Goldman Sachs Downgrades S&P 500, Suggests Cash Position

Goldman Sachs has downgraded the overall market for the next three months, insisting investors take a cash position ahead of the election.

A new analyst note by the investment bank predicts the S&P 500 and STOXX Europe 600 to decline nearly 10 percent over the next three months. Goldman has downgraded its view of the overall market to Underweight, but remains Neutral over the next 12 months. The company is taking its own advice, reportedly staying "overweight" in cash.

"We think this reversal in positioning increases the likelihood of an equity pullback given that our fundamental view has not changed: valuations still appear high and we still expect poor earnings growth across regions," said the bank.

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