Goldman Sachs said that market risk appetite sentiment is at a historically rare high, and they are maintaining an overweight position on stocks.

Goldman Sachs strategists said that as optimism about the economy offsets geopolitical uncertainties, investors' risk appetite has reached a five-year high. The Goldman Sachs strategists wrote in a report that their risk appetite indicator touched 1.09 last week, the highest since 2021 and in the 98th percentile since data began in 1991. "Such high levels of risk appetite are rare," the Goldman Sachs team said, noting that there have only been six other instances in history where the indicator exceeded 1.0. However, this does not necessarily mean that investors should turn bearish. They stated that the macro environment is supportive and could sustain stock returns.