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Goldman: Sell-off risk rising, few places to hide

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The risk of a stock market pullback is increasing and investors have few options to preserve capital when that drop occurs, according to a new Goldman Sachs report.

"With the S&P 500 close to all-time highs, stretched valuations and a lack of growth, drawdown risk appears elevated," strategist Christian Mueller-Glissmann wrote in a note to clients Tuesday.

"Large equity drawdowns are difficult to diversify," he added. "International diversification is increasingly difficult with higher correlations among regional equity markets. ... With bond yields close to all-time lows and a large proportion of fixed income offering negative yields, 'safe assets' and 'hedges' for equities are more scarce."