Goldman Sachs economists have joined several other Wall Street forecasters in cutting their targets for the S&P. However, for now, the economists view the selloff as an event-driven bear market rather than a cyclical bear market. Stocks tend to suffer average declines of 30% in both kinds of bear markets, but “differ in terms of duration with event-driven downturns being shorter with a faster recovery profile”, they said. However, they said the equity selloff could well turn into a longer-lasting cyclical bear market as recession risks mount.
