At times of market turbulence, investors tend to flee to assets expected to either retain or increase in value — such as gold, the Japanese yen and government bonds.

Government policy uncertainty and a poor earnings outlook will keep the stock market from rallying any further this year, according to Goldman Sachs.

Low interest rates have boosted U.S. equity valuations this year, bringing the to record highs, and investors are hoping long-term yields dropping even more will lead to even higher stock prices. But the market's growth will stop just a little bit higher from here, Goldman Sachs said in a note to clients.

"Although our rates strategists forecast the 10-year US Treasury yield will fall to 1.75% by year-end, we expect lingering policy uncertainty and negative revisions to 2020 EPS will limit equity upside," said Goldman Sachs' chief U.S. equity strategist David Kostin.