Goldman Sachs Warns Slowing Profit Growth May Fuel ‘Earnings Bubble’
Summary
- Goldman Sachs warned that slowing profit growth could raise the risk of a so-called earnings bubble.
- Goldman Sachs said it expects companies’ earnings growth rates to slow from current levels.
- Still, Goldman Sachs said the odds of a sharp earnings decline or a broader collapse in corporate results remain low, and that investors should watch both elevated expectations and a slowdown in actual profit growth.
Forecast Trend Report by Period
Goldman Sachs warned that slowing corporate profit growth could lead to a so-called earnings bubble.
Cointelegraph reported on September 18 that Goldman Sachs expects companies’ earnings growth rates to ease from current levels.
The bank said the odds of a sharp earnings decline or a broader collapse in corporate results remain low.
Goldman Sachs said investors should watch both elevated expectations for corporate earnings and the possibility that actual profit growth slows.
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