After the Federal Reserve decided not to take extraordinary measures to try to rescue investors, the stock market seemed to realize the full import of all the challenges it currently faces. Between slowing emerging market economies, huge uncertainties in Europe, and growing concerns in the U.S, the last thing stocks needed was a bearish call from Goldman Sachs recommending that its clients sell the S&P 500
But are investors overstating the importance of Goldman's bear call? Looking more closely at its recommendation, Goldman suggested shorting the S&P with a target of 1285, about 5% below where the market opened the day, and roughly corresponding to the lows that the index hit in May. Even if Goldman's prediction comes to pass, it would still leave the market with a gain on the year.
More importantly, anyone who expects to put more money into the market than they're going to take out over the next year or two should want stocks to fall. Already, Dow components Chevron
Don't be afraid
Don't let Goldman's bearish call make you scared. Instead, look at it as helping you get a big opportunity to increase your returns.
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