It is unlikely that stock markets will enter an interrupted period of falling prices, a strategist at Goldman Sachs told CNBC Wednesday, despite ongoing talk of an impending slump for equities.
Some market players have begun wondering whether stock valuations have reached a peak, following a recent sell-off, which could then lead to a recession. They are worried that new regulation in the tech sector will limit profits, as well as higher interest rates, lower growth momentum and a potential trade war. However, according to Goldman Sachs, there is little evidence that there will be a recession soon.
"Without interest rates and inflation expectations really rising very much, it is difficult to see the triggers for a recession anytime soon," Peter Oppenheimer, chief global equity strategist and head of macro research at Goldman Sachs International, told CNBC Wednesday.
"And it is really a recession or fear of profits falling that is the usual trigger for a sustained bear market (in stocks) and we don't see those risks as being very high," he added.