Goldman Sachs downgraded equities to “neutral” over a 12-month time-frame on growth and valuation concerns, but upgraded commodities to “neutral” on a three-month basis saying there was less downside potential to oil prices, CNBC reported. “Until we see sustained signals of growth recovery, we do not feel comfortable taking equity risk, particularly as valuations are near peak levels,” it said. “Our equity strategists have become more defensive, owing to heightened drawdown risk and growth scarcity,” it added in a note dated May 17.
