Displaying items by tag: Goldman Sachs

Friday, 24 December 2021 23:25

Goldman Just Got Very Bearish on 2022

Omicron is sweeping the U.S. and once again threatening to cripple the economy, already major airlines are canceling flights and potential Christmas plans. This makes moderate Dems walkout on the Build Back Better even more critical as the country could desperately be in need of stimulus at the moment. This caused Goldman to cut its GDP growth by 1% annualized in Q1 2022 and a half a percent in Q2. CPI rose at a 39-year record in November, which could make the possibility of a big BBB bill even less likely as price pressures deter policy makers. Goldman still sees the possibility that congress will aid a bit with the new omicron surging.


FINSUM: It’s tough to justify another trillion-dollar stimulus package with roaring inflation, and it might be futile with the Fed pumping the breaks; lookout for stagflation!

Published in Eq: Total Market
Friday, 17 December 2021 18:53

An Interesting New ESG Launch

The environmental, social, and governance investment trend continues on a full head of steam as Goldman Sachs and BNY Mellon both launched a series of new ETFs aligning with different ESG objectives. Goldman launches a Large Cap equity ETF which tracks companies aligned with the new Paris Climate Agreement. Meanwhile BNY Mellon drops three new active ESG ETFs: the first will invest in over 80% sustainable U.S. equity, the second geared towards global markets, and the final will target emerging markets. These are just the latest as both Ark and JPMorgan created two new ESG ETFs as well in the last week. Some of the newer ETFs are following in the Euro area trend of specific disinvestment from companies reliant on C02.


FINSUM: The best part of all the new ESG focused products is the way they can be added that complement an existing portfolio: lacking large cap, pick up an ESG focused large cap ETF.

Published in Eq: Tech
Monday, 13 December 2021 08:15

Goldman Says Don’t Buy the Dip

November was full of volatility, and that's more than leaked into December, but Goldman warned investors about buying the dip hoping for a post Christmas rally. The biggest two threats Goldman sees are ongoing, the new omicron Covid 19 variant and the newfound inflation hawkishness by the Fed. The bear wave has hit a variety of asset classes whether its tech or bitcoin, and their risk appetite is low. The street is mixed however as some indications of omicron is it won’t be severe and Fed actions haven’t taken hold just yet. The VIX is still above its short and longer run moving averages which should keep investors cautious.


FINSUM: There is really no reason to move drastically right now, the Fed will be more transparent in the next couple of months.

Published in Eq: Total Market
Friday, 03 December 2021 16:49

Goldman Rides Amazon to the Clouds

Goldman Sachs has a new platform for investors to assist in portfolio management. In a partnership with Amazon’s cloud division, GS is bringing data and software tools for software management to a cloud computing environment. The product will give investors access to aggregated data and GS expertise in investing. Additionally they hope to lower the barrier to entry for quantitative trading techniques and allow smaller firms to have access. The partnership came as a shock at how close both companies are to one another. This also adds another company to Amazon's growing list of cloud based partnerships which have had an incredibly high success rate. GS will monetize the platform and target it to hedge funds and other financial companies.


FINSUM: This products biggest benefit will be the clean data and accessibility, but a strong partnership like this could send regulation warning signs to Washington.

Published in Eq: Financials
Tuesday, 09 November 2021 17:39

Goldman says “Good Luck” to the Bond Market

Strategists for Goldman Sachs, Christian Mueller Glissmann and Peter Openhiemer, say that government bonds are failing to meet the traditional hedging requirements and to consider higher cash and equity allocations. There is still a small negative equity/bond correlation and investors shouldn’t leave the traditional 60/40 split immediately. There are other reasons to allocate more to equity though such as a higher equity risk premia. Inflation is eating away very low yields, making cash a better relative investment, and rate volatility could be even higher in the upcoming Fed cycle. If bonds/equity correlation moves to zero then a balanced portfolio is futile and cash is the safer option.


FINSUM: Investors should need to watch the real return on their fixed income investments and high yield debt might not be worth the risk to generate the ‘normal’ bond returns.

Published in Bonds: Total Market
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