Goldman Sachs strategist: U.S. stocks may continue to underperform

Oppenheimer, a strategist at Goldman Sachs, stated that European and other overseas stock markets may continue to outperform the US stock market, reiterating the advice to diversify investments into assets outside the US. The average correlation between stock markets of various countries has fallen to the lowest level since the 1990s. However, they stated that any further downward revision of US economic growth expectations could also hurt overseas stock markets.

If the main reason for further decline in US stocks is concerns about economic growth, rather than dominant tech stocks, historical performance shows that other markets will also decline.