Equity risks are due to rise in the latter half of the year, Goldman Sachs says

The first half of this year has been characterized by a technology-led rally within the equity markets. But as the latter half of the year kicks off, Goldman Sachs foresees the tides turning for investors.

“As we enter the second half of the year, the risks for equity holders are rising,” wrote strategist Peter Oppenheimer. He also pointed to an uncertain backdrop that includes lofty valuations and increasing political risk.

However, Oppenheimer reassured investors by pointing to historical records indicating that a solid second half of the year usually follows a strong first half.

“Nonetheless, it should be stressed that it is unusual for 2H returns to be weak following 1H returns as strong as we have seen this year,” he wrote.