LONDON, (Reuters) – High valuations have made equities more vulnerable to a correction. However, the latest fall was not indicative of markets reaching “danger zone” levels yet. Goldman Sachs (NYSE) stated in a note that high valuations have led to a strong recovery from a bearish market.

The U.S. Investment Bank stated Wednesday that while it had not fallen to the danger zones levels that usually precede bear markets (a drop of at least 20%), its levels have reached levels “which are typically consistent with corrections, relatively low returns over one and five year,”

Stocks in the United States fell Tuesday. They have lost nearly 9% this month due to uncertainty surrounding an increasing hawkish Federal Reserve. Also, rising geopolitical tensions and growing geopolitical tensions caused investors to sell high-flying tech shares.[.N]

Goldman Sachs stated that markets are currently in a correction period within a bull cycle. Current levels indicate low returns for the next one-five years.