Goldman Says Buying S&P After 5% Drop Is Usually Profitable

In a separate note, Goldman strategists including Peter Oppenheimer said they expect further declines in global stocks, although they don’t predict a bear market — described as a 20% drop from a recent high.

Not everyone on Wall Street agrees.

At JPMorgan Chase & Co.’s trading desk, U.S. Market Intelligence head Andrew Tyler says stocks haven’t bottomed yet. To him, a 10% correction in the S&P 500 seems “likely” as he expects more selling from systematic funds to hit the market over the next week.

The S&P 500 Index traded 1.5% higher at 11:50 a.m. in New York, while the Nasdaq 100 Index added 1.6%.

Meanwhile, the strategy team at Citigroup Inc. warned this week that “recessionary scenarios are by no means priced in.”

The bank’s so-called bear market checklist — which measures metrics such as stock valuations, the yield curve, investor sentiment and profitability — recommends “buying into weakness,” Citi strategist Beata Manthey wrote in a note.

But “we would feel more comfortable doing so once we see evidence of a more complete positioning unwind,” she said.

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