Goldman warns of lackluster returns ahead in 'fat and flat' trading range

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The market's robust recovery from its springtime sell-off has been remarkable, but a return to elevated prices coupled with an uncertain earnings outlook sets the stage for lackluster trading, according to Goldman Sachs.

Specifically, investors should prepare for choppy, range-bound patterns in the market, Goldman strategist Christian Mueller-Glissmann wrote in a note published Tuesday.

"While momentum is positive, levels of growth remain weak and uncertainty is high. At least in the near term, equities are likely to be stuck in a 'fat and flat' range, i.e., below average returns with above average volatility," the strategist wrote.