Investors should consider the risk of a successful coronavirus vaccine unsettling markets by sparking a sell-off in bonds and rotation out of technology into cyclical stocks, according to Goldman Sachs Group Inc.

The increased probability of an approved vaccine by the end of November is underpriced by equity markets, wrote strategists including Kamakshya Trivedi in a note on Aug 5.

Over the next few months, the ramifications of the US election and the evolution of the virus — in part as schools reopen — are also likely to be key drivers of the market, they said.

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