The Middle East conflict adds more uncertainty to the market, analysts said.
Higher borrowing costs for longer mean financial conditions will tighten even without further action from policymakers.
Goldman economists recommended exposure to “equity-down rates-up hybrids.”
The largest seven tech stocks have a PEG ratio of 1.3, compared with 1.9 for the median S&P 500 stock.
A majority of the bank's investors see a challenging year coming for risk assets, he said.
This S&P 500's astounding run this year has forecasters split about what happens next.
“Sell the last rate hike,” bank strategist Michael Hartnett said.
The two Wall Street giants have divergent views on the trajectory of the equity market.
Strategist Michael Wilson said “investors should be ready for potential disappointment.”
Private clients were net sellers of stocks for a second straight week in the five days through Aug. 2.