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

According to Odaily Planet Daily, Goldman Sachs analysts said in a report to clients that as the Federal Reserve is about to start its expected interest rate cut cycle, American households' capital allocation to the stock market will only "slightly" shift from credit to stocks. The Federal Reserve slashed interest rates by 50 basis points last month to a range of 4.75% to 5.00%, and more rate cuts are expected before the end of this year.

“Steady interest rates near 4% suggest that investors will continue to have more attractive alternatives to stocks, but to a lesser extent than in past years,” Goldman analysts wrote.