A team of equity strategists at Goldman Sachs Group said that, according to their model, the risk of a stock-market correction over the next three months is rising.
To be sure, the S&P 500 is already down about 4% from last week’s record close. That means it’s about halfway to correction territory already. Investors typically define a correction as a drop of 10% or more from a recent high.
But Goldman’s model is based on more than just the recent price action. It also incorporates gauges on policy uncertainty, and other factors.