A stock-market bear signal is at a more-than-4-decade high, says Goldman

A gauge of bullish and bearish momentum in the U.S. stock market is ringing alarms for strategists at Goldman Sachs.

The investment bank’s so-called bull-bear indicator, which examines five market factors, indicates that the likelihood of a bear market occurring is at its highest point since around the mid-1970s(see chart below).

Goldman analysts led by Peter Oppenheimer, chief global equities strategist, said an unusual period for Wall Street, characterized by loose monetary policy and a recent spate of fiscal stimulus has resulted in an uncannily bullish cycle for markets that is likely to come to a screeching halt.

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