Goldman Sachs favors stocks over credit as late-cycle risks rise

Goldman Sachs remains overweight equities and underweight credit for the next 12 months. The bank expects solid earnings, slowing but resilient growth, and low US recession risk to support stocks. It warns that high bond yields, fiscal concerns, and sticky inflation could cap gains. Goldman recommends diversification into low-volatility stocks, high-dividend shares, gold, and real assets.