Goldman Sachs: Buying after a 5% drop in the S&P 500 index is usually profitable

On August 6th, Jin10 Data reported that it is usually profitable to buy the S&P 500 index after a 5% decline. The team led by David Kostin stated that since 1980, if investors buy the index at a price 5% lower than the recent high, the median return in the next three months will be 6%. In most cases, a 10% pullback is also an attractive buying opportunity, but the performance of the rebound after this scale of pullback is weaker compared to a 5% decline. Strategists said that cyclical stocks are performing poorly, but the U.S. stock market does not seem to be pricing in an economic recession. Although the valuations of large-cap tech stocks have declined, they continue to reflect optimism about artificial intelligence.