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Top Goldman strategist says the market could be oversold, sees room for 'reasonable returns'

Published Sun, Mar 6 20226:44 PM EST

Elliot Smith @ElliotSmithCNBC

LONDON — Risk indicators suggest that the stock market could be due for a rebound, according to Goldman Sachs Chief Global Equity Strategist Peter Oppenheimer. Global markets have been rattled over the past week by Russia's invasion of Ukraine and subsequent crippling sanctions from Western powers . Losses continued to deepen on Friday as Russian troops seized Europe's largest power plant . Oppenheimer said equity risk premiums — the extra returns an investor can expect for taking on more risk — were "starting to get quite large," but had not yet reached the levels seen during major systemic crises such as the Global Financial Crisis of 2008. Speaking to CNBC's "Squawk Box Europe" on Friday morning, he added that Goldman's Risk Appetite Indicator, which looks at different risk premia, indicated that on the basis of trends seen from similar levels in the past, "the market ... is getting a bit oversold." In a note last week, Goldman Sachs showed that the average rise in markets from this level is around 11% over 12 months, close to the Wall Street giant's current forecast for returns over the next year. Growth slowdown Some of the recent bearishness in markets has been attributed to concerns about a growth slowdown just as central ban