Goldman Sachs recommends strong U.S. stock positions for 2025 despite high valuations

Goldman Sachs recommends investors maintain a strong position in U.S. stocks for 2025, despite high valuations. The S&P 500's price-earnings ratio stands at 27.49, significantly higher than international markets. The firm suggests reducing foreign stock exposure and diversifying into alternatives like private equity. They believe U.S. earnings growth will continue to outpace Europe, supporting their outlook. Goldman anticipates falling interest rates in 2025, aided by potential Federal Reserve rate cuts. This outlook contrasts with market expectations, which have shifted following recent economic reports.