US stocks are unlikely to enter a bear market over the next 12 months and the economic recovery will continue to support equities, according to strategists at Goldman Sachs Group. The team, led by Andrea Ferrario, sees only an 18 per cent chance of stocks falling more than 20 per cent, even taking into account the risks posed by the presidential election. After surging nearly 25 per cent in 2023, the S & P 500 is up about 20 per cent this year, led by broader tech stocks. While bond yields have rallied this month on doubts about the depth and breadth of the Federal Reserve's easing cycle and election uncertainty, evidence of a US economic recovery has kept the rally going. "Stocks should be able to absorb higher bond yields, as long as they are driven by better economic growth," the strategists wrote in the note. Strategists said the economic environment remained benign despite recent signs of weakness.