Tag Archives: Goldman

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

August marked the seventh straight month of gains for the S&P 500 (^GSPC) as investors ignored softening U.S. economic data at the hands of the COVID Delta variant.  But investors may be wise to stop ignoring the data, and position for a September rife with market volatility, says the team at Goldman Sachs.  “General mobility statistics have weakened, full-service restaurant indicators have softened, travel intentions appear to have faded and retail traffic declines (off of 2019 levels) have… Source link

In a bull market like the one we have at present, it’s unsurprising that money managers at mutual funds and hedge funds — often with starkly opposing approaches to investing clients’ cash — could find a bit of common ground on the best names to own.  Goldman Sachs found in a new analysis of 813 hedge funds with $2.9 trillion in gross equity exposure and 573 mutual funds with $3 trillion in assets under management, there are nine stocks both view bullishly right now. They include: Adobe ( Source link

(Bloomberg) — Elevated commodity prices and expectations for earnings growth are igniting bullish bets on emerging-market equities after more than a decade of underperformance that left them approaching a 20-year low against developed-nation stocks. Goldman Sachs Group Inc., Bank of America Corp. and Lazard Asset Management expect a boost for developing equities as investors capitalize on cheap valuations once vaccine rollouts pick up, helping the global economy to recover from the pandemic…. Source link

Goldman Sachs sees the U.S. labor market maintaining its momentum well into 2022.  Economists at the firm led by Jan Hatzius lowered their year-end 2021 unemployment rate forecast slightly to 4.1% on Monday. For 2022, Hatzius and his team projects a 3.5% unemployment rate. If achieved, the unemployment rate would be at a 50-year low as the economy powers back from the COVID-19 pandemic.  Employment at those levels in 2022 would bring the economy to full employment, Hatzius says.  “We expect… Source link

Goldman Sachs is getting more bullish on stocks. The Wall Street firm on Thursday upgraded its year-end price target for the S&P 500 (^GSPC) to 4,700, up from the 4,300 seen previously. That new target would represent an upside of nearly 7% from closing prices on Wednesday, and add to what has already been a more than 17% year-to-date gain for the blue-chip index. Goldman also expects the S&P 500 to close out 2022 at 4,900, raising this from a previous target of 4,600. A combination of… Source link

The rout in a good number of cyclical stocks amid resurgent COVID-19 infections this past month is overdone and it’s time to buy ahead of a coming big rally, contends Goldman Sachs.  “Among U.S. industries, Airlines (19% below its 52-week high) and Hotels (11%) rank among the laggards in recent weeks. If our economic outlook proves correct, these stocks should rebound in coming months. Likewise, the Energy sector trades 12% below where it traded a month ago and our commodity strategists’… Source link

Bitcoin cryptocurrency coins and a PC motherboard are pictured in Kyiv on 19 July, 2021. (Photo by STR/NurPhoto via Getty Images) Valuing a cryptocurrency is not nearly as simple as valuing a stock. A stock is a piece of a company, and you can look at what the company owns and its revenue, costs, profits, and trends to determine some sort of estimate of its worth. For crypto, it’s far more nebulous since coin values aren’t usually connected to revenues, profits, or any of the usual… Source link

Goldman Sachs (GS) reported second-quarter earnings results on Tuesday that far exceeded Wall Street’s expectations, driven by strength in investment banking. Here were the key figures versus expectations:  Adjusted earnings per share (EPS): $15.02 per share vs. $10.15 estimate Revenue: $15.39 billion vs. $12.43 billion estimate Goldman’s investment banking business posted its second-best quarter ever with $3.61 billion, following a record first quarter. Revenue from investment banking… Source link

Being a successful investor this coming earnings season may be as easy as paying attention to companies with the best potential to expand profit margins amidst the current bout of inflation across spectrums such as raw materials and labor, Goldman Sachs reasons.  The smartest investors in the game appear to already be placing that bet. “Investors have started to reward companies with attractive margin profiles. Our valuation model shows that profit margins are the second most important driver… Source link