Goldman Sachs is warning that markets are a bit too relaxed about the risk posed by the Ukraine situation and economists at the bank have predicted the American economy to fall into recession next year.
Current prices in the market are no longer reflecting the negative scenarios that could pan out from the Russia-Ukraine conflict. The recent reversal in oil prices, which had earlier surged sharply upward, and the out-performance of European assets seem to suggest a “significant relaxation in the market’s assessment of the global implications,” Goldman strategists Vickie Chang and Dominic Wilson said in a note.
