Goldman Sachs economists believe the chances of the economy entering a recession in the next two years is still low but the bank’s equity team have just released a recession manual for its clients on how to prepare for a downturn.
“A recession is not inevitable, but clients constantly ask what to expect from equities in the event of a recession,” wrote chief U.S. equity strategist David Kostin in a note to clients Thursday. “Our economists estimate a 35% probability that the U.S. economy will enter a recession during the next two years and believe the yield curve is pricing a similar likelihood of a contraction.”…