Amanda Perobelli/ Reuters
- Goldman Sachs estimates that US households are likely to sell $750 billion of stocks in 2023.
- Retail investors are turning toward fixed income amid the Fed's monetary tightening campaign.
- A higher-than-expected savings rate and the rise in bond yields are driving the shift.
US households are pivoting away from stocks as the Federal Reserve continues to hike interest rates, and the shift could result in a $750 billion sell-off in equities this year, according to Goldman Sachs strategists.
A higher-than-expected savings rate and the rise in bond yields are leading the shift. Goldman economists forecast yields for the 10-year Treasury will rise 0.6% by the end of 2023, while personal savings rates will surge 0.8% in the same time.