David Kostin, chief US stock strategist at Goldman Sachs, said that if interest rates continue to rise sharply, no matter what is the reason for the rise, US stocks will probably fall into trouble. Kostin believes that since 2006, the S&P 500 index has declined by an average of 4% with real returns rising by more than 2 standard deviations in a month. If the Federal Reserve cuts interest rates later this year and concerns about the cost of capital subside, then better stocks compared to value stocks (such as stocks with a high return on capital) may be hit.