Goldman Sachs Warns of Potential Stock Market Downturn

Investment bank Goldman Sachs has issued a warning regarding the potential for significant stock market declines. This alarm comes amidst rising economic uncertainties and is based on the firm’s equity asymmetry framework, as indicated by strategist Neil Sethi on August 14, 2025. The company believes their internal risk models suggest potential sharp drawdowns in U.S. equity indices, a signal of volatility for investors and market participants alike. While current market conditions remain positive, Goldman Sachs emphasizes the need to remain cautious regarding a potential recession scenario.