Goldman Sachs warns  stock markets still to reach trough

Strategists say a peak in interest rates and lower valuations reflecting recession are necessary before any sustained stock-market recovery can happen

Goldman’s strategists expect Asian stocks to outperform next year, with the MSCI Asia-Pacific ex-Japan ending the year 11% higher.

Stock market investors hoping for a better year in 2023 will be disappointed, according to Goldman Sachs, who said the bear market phase is not over yet.

“The conditions that are typically consistent with an equity trough have not yet been reached,” strategists including Peter Oppenheimer and Sharon Bell wrote in a research note.