Goldman Sachs believes the rare combination of conditions supporting this bull market, especially the run in technology stocks, is about to end.
Goldman believes there are two possible endings to this tale and they both aren't great for stocks. Either the stronger growth causes the Federal Reserve to tighten more aggressively, reducing equity valuations or the current low-rate environment is "proven correct" and the pace of economic growth experiences a "significant slowdown."
The Fed is expected to raise interest rates at the end of its two-day meeting Wednesday. The 10-year Treasury yield has gone from above 2.60 percent in March to 2.21 percent Monday.
Despite some of this dire talk, Goldman does not expect something catastrophic to occur in the market yet or with technology stocks. Kostin predicts the S&P 500 will be 4 percent lower from here to 2,325 by the end of the year.
Reference: CNBC
Read more: http://www.cnbc.com/
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