U.S. stocks have ‘limited upside' from here, says Goldman Sachs Asset Management

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U.S. stocks have “limited upside” from here and investors should be looking for better opportunities elsewhere, according to Goldman Sachs Asset…

"We do tend to think that U.S. equities right now are fairly valued but there's limited upside at these valuations," James Ashley, head of international market strategy at Goldman Sachs Asset Management, told CNBC on Wednesday.

U.S. stocks have"limited upside" from here, given the macroeconomic backdrop — and investors should be looking for better opportunities elsewhere, according toThough GSAM's base case is for the Fed to engineer a soft landing and for the U.S. economy to avoid recession, James Ashley, head of international market strategy, told CNBC on Wednesday that if a recession were to come, it would be this year.

"We do tend to think that U.S. equities right now are fairly valued but there's limited upside at these valuations. The better opportunities might be in other markets," he concluded.Where emerging markets are concerned, the Wall Street giant's asset management arm sees India as a"strategic long-term growth story," Ashley said.

Given the rally already enjoyed in Indian markets of late, Ashley acknowledged that one could not argue that the country's stocks are"cheap" right now, but insisted there was still"significant upside based on that growth story."

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