Equities in developed markets are once again looking a little expensive, according to Peter Oppenheimer, chief global equities strategist at Goldman Sachs, who has suggested that a 10 percent drop in the asset class could happen in the coming months.
"I think it's quite possible we could get a move up to around 10 percent lower, we thought for a long time that markets are stuck in what we described as a 'fat and flat' range," he told CNBC Tuesday, expanding on a research note published by the investment bank on Monday.
"(Stocks are in) a sort of wide but volatile trading range with relatively low returns. And we think we're at the high end of that trading range and moving towards the lower end is quite likely given the rally that we have seen."
The bank downgraded stocks to "underweight" on Monday as part of its three-month asset allocation. Although it remains "neutral" on equities over a 12-month period and continues its "overweight" position in cash.