Goldman Sachs: The Fed may implement more interest rate cuts before the end of the year, and investors will continue to hold alternative investments that are more attractive than stocks

Goldman Sachs analysts said in a note to clients that U.S. households will only “slightly” shift their allocations from credit to stocks as the Federal Reserve is about to embark on an expected rate-cutting cycle. The Fed slashed interest rates by 50 basis points last month to a range of 4.75% to 5.00%, with more rate cuts expected before the end of the year. “Stable rates near 4% suggest that investors will continue to have more attractive alternatives to stocks, but to a lesser degree than in the past few years,” Goldman analysts wrote.