The stock market is “good,” but it’s “bad” for investors, according to a new study by the investment banking firm Goldman Sachs.
The firm, which has been tracking stocks for decades, said Wednesday it was “not at all surprised” by the findings.
The company also said the Dow Jones Industrial Average has risen almost 400 points in a month and the S&P 500 has soared about 2,500 points.
But the firm warned that the trend could continue.
“We are not at all shocked by the fact that the stock market has been rising in recent weeks and weeks,” Goldman Sachs chief investment officer John P. Donohue said in a statement.
“The problem is the volatility in the market.”
The Dow is up nearly 400 points this year, the S & P 500 has risen about 2.5 percent.
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“When markets go up, there’s always the possibility of the stock price falling,” Donohu said.
“It’s not that you’re investing in a bubble, it’s that the market is not very efficient at forecasting events.”
Investors should be cautious about the rise of the S.&:P 500, he added.
“At this point, I would not invest in stocks if the market price of the company was going to fall substantially.”
The firm’s report follows similar findings from earlier this year from Morgan Stanley and Citigroup.
“There is a lot of room for growth in the stock-market market, and that should be welcomed by investors,” said James Anderson, chief investment strategist at investment bank J.P. Morgan.
The S&s index has risen more than 9,000 points in just two months, compared with a gain of about 2 percent for the S and P 500.