Goldman Sachs believes that rising rates coupled with an economic slowdown will prompt households to sell $100 billion worth of stock next year. "Rising rates are causing a shift in investor mindsets from TINA (`There Is No Alternative') to TARA (`There Are Reasonable Alternatives'), indicating a weakening outlook for equity demand going forward," David Kostin, Goldman's head of U.S. equity strategy, said in a note. "We expect households to sell $100 billion in equities in 2023." Household buying had been the the largest source of equity demand since the beginning of 2020 but allocations from households turned slightly negative in the second quarter, Goldman noted. The reversal came as extreme volatility gripped the stock market. The third quarter marked the first time in about 80 years where the S & P 500 suffered a quarterly loss after being up more than 10% at one point, according to Bespoke Investment Group. The equity benchmark lost more than 5% last quarter as the Federal Reserve strengthened its commitment to aggressive rate hikes to fight inflation. Goldman said bond yields have risen to attractive levels that represent a good alternative to equities for households. A 12-month Treasury now yields 4.0%, the most since 2001. Meanwhile, yields on corporate debt have also increased substantially in recent months and are above average relative to the last 30 years, Kostin said. Aside from equity alternatives, slowing growth and rising unemployment have also coincided with household sales of equities historically, Goldman said. The Fed's series of big rate hikes are expected to slow down the economy. Goldman's economics team forecasts GDP growth will slow to 0.9% in 2023 from 1.6% in 2022 and unemployment will rise to 4.0% from 3.6%.