Tag Archives: Goldman

The investing landscape will likely be much different in 2022 than 2021, but the backdrop is still fertile for more gains on the S&P 500, according to Goldman Sachs. Goldman said Tuesday it expects the S&P 500 (^GSPC) to rise 9% to 5,100 by the end of 2022. If achieved, that would mark a 10% total return including dividends. Through Tuesday, the S&P 500 had advanced about 25% so far in 2021.  “The equity bull market will continue,” said David Kostin, Goldman Sachs chief U.S. equity… Source link

About 5 million Americans have exited the labor force since the pandemic began. Goldman Sachs estimates that about 3.4 million are likely gone for good due to retirements, meaning that 1.7 million people are open to returning to work. But Goldman said in a note on Nov. 11 that there is a “long-run risk” to labor force participation: a general distaste for work. The bank’s economics team pointed to the reddit thread r/Antiwork, a social media community carrying the mantra “Unemployment… Source link

Goldman Sachs is taking a somewhat contrarian view on the longer-term outlook for inflation. The global banking and investment giant is expecting a core inflation rate of 4.3% in the U.S. at the end of this year, followed by a drop to 3% in June 2022 and 2.15% by December 2022. Yahoo!Finance editor Brian Sozzi points to several factors informing Goldman Sachs’ analysis: “First is an improved supply of semiconductors as manufacturers such as Intel and Taiwan Semiconductor ramp up… Source link

Hat tip to Goldman Sachs for taking a somewhat contrarian take on the longer-term outlook for inflation.  Whether it proves correct is anyone’s guess as headlines continue on price spikes for commodities and consumer goods. “We are boosting our sequential inflation assumptions for Q4 and early 2022. We now expect year-on-year core PCE inflation of 4.3% at year-end, 3.0% in June 2022, and 2.15% in December 2022 (vs. 4.25%, 2.7% and 2.0% previously). This slower resolution of supply constraints… Source link

The U.S. economy will be battling a continued slowdown in 2022 as it contends with sticky inflation and supply chain bottlenecks, reasons Goldman Sachs (GS) chief economist Jan Hatzius.  “I would say growth is clearly slowing. Obviously we are past the peak [growth] rate, but it’s a relatively graduate slowdown,” said Hatzius on Yahoo Finance Live.  Hatzius and his team made headlines earlier this month for cutting their 2021 GDP growth estimate to 5.6% from 5.7%. The group also issued a… Source link

If you thought home prices couldn’t go any higher, hold on to your hat: Goldman Sachs (GS) economists are forecasting even more price increases in the year ahead. “Our model now projects that home prices will grow a further 16% by the end of 2022,” wrote a Goldman Sachs team of economists led by Jan Hatzius in a recent note. “Of all the shortages afflicting the U.S. economy, the housing shortage might last the longest,” he said.  Home prices are currently up 20% year-over-year. The boom in… Source link

Investors will have a lot to contend with come the start of third quarter earnings season this month, most of which could prove far from flattering to one’s portfolio.  That’s the latest temperature check on markets from the team over at Goldman Sachs.  The investment bank’s chief U.S. equity strategist David Kostin warned on Monday of four risks to investors from upcoming corporate earnings reports: (1) supply chain bottlenecks; (2) climbing oil prices; (3) inflationary labor costs; and (4)… Source link

There are some bullish trades to put on in the oil patch to ride the new gusher in prices for black gold and natural gas, says Goldman Sachs analyst Neil Mehta.  Mehta reiterated Buy ratings and aggressive upside price targets on oil majors ConocoPhillips (COP) and ExxonMobil (XOM) Monday. The analyst sees ConocoPhillips delivering a 20% return for investors over the next 12 months.  “The company should deliver 30%-40% of cash flow back to shareholders in the form of dividends/buybacks, has… Source link

Goldman Sachs believes people are over invested in big cap tech names such as Facebook, Amazon, Apple, Netflix and Google [FAANG] that have minted fat profits and higher stock prices the past decade amid an explosion in tech advances. To get investors thinking beyond FAANG, the investment bank recently launched the Goldman Sachs Future Tech Leaders ETF. As the name implies, it looks to invest in the next big winners in tech that have true global exposure. “We launched the ETF strategy because… Source link

The biggest fear investors should have with the crisis gripping overly indebted Chinese real estate developer Evergrande is global contagion, argues Goldman Sachs.  “The danger is precisely the contagion effect, should a default occur without clear ‘ring-fencing’ of spillovers to other parts of the real economy or financial sector. Events over the past week suggest risks of inching toward that direction,” said Goldman Sachs Hui Shan in a research note on Monday.  Shan points out that he is… Source link