×
Newsmax TV & Webwww.newsmax.comFREE - In Google Play
VIEW
×
Newsmax TV & Webwww.newsmax.comFREE - On the App Store
VIEW
Tags: goldman | where | invest | equities

Goldman Outlines 'Where to Invest Now' in US Equities

stacks of money amid capital invest silver words
(Iqoncept/Dreamstime)

Monday, 14 January 2019 08:11 AM EST

U.S. stocks could deliver big gains in 2019 if history is any guide, and some companies have more potential to outperform than others, according to Goldman Sachs Group Inc.

The S&P 500 typically rebounds after declining 20 percent within a quarter, and historical precedents of policy concerns and late-cycle drawdowns show potential for major upside, strategists led by David Kostin wrote in a Jan. 11 note.

The U.S. benchmark came to the brink of a bear market late December before ending 2018 down 6.2 percent after two years of gains.

Expectations of a positive outcome from the trade talks and dovish commentary from Federal Reserve officials have seen the S&P 500 advance more than 10 percent since coming within a whisker of a bear market on Christmas Eve.

While Goldman sees potential for big gains, the firm has been relatively cautious, with strategists led by Kostin last week advising investors to boost their cash holdings.

Companies with high and stable gross margins would be one area to consider, as businesses with strong pricing power may be better able to withstand rising input costs, they wrote in the Jan. 11 report. Such firms would include National Instruments Corp., Waters Corp., VMWare Inc. and Idexx Laboratories Inc.

Stocks forecast to boost margins by 50 basis points annually would also be attractive, the reports said. It added that such firms are scarce due to late-cycle dynamics, but they would include Netflix Inc., TripAdvisor Inc., Expedia Group Inc. and Chipotle Mexican Grill Inc.

High-quality stocks would also be good, according to the strategists, who bestow that label on equities with a superior return on equity versus the S&P 500, low drawdown risk and strong balance sheets. Alphabet Inc., Comcast Corp., PepsiCo Inc., Halliburton Co., BlackRock Inc. and Wells Fargo Corp. are among companies making the cut in that list.

Goldman also noted that stocks exposed to U.S.-China trade have lagged, including Micron Technology Inc., Corning Inc. and MGM Resorts International.

© Copyright 2024 Bloomberg News. All rights reserved.


StreetTalk
U.S. stocks could deliver big gains in 2019 if history is any guide, and some companies have more potential to outperform than others, according to Goldman Sachs Group Inc.
goldman, where, invest, equities
326
2019-11-14
Monday, 14 January 2019 08:11 AM
Newsmax Media, Inc.

Sign up for Newsmax’s Daily Newsletter

Receive breaking news and original analysis - sent right to your inbox.

(Optional for Local News)
Privacy: We never share your email address.
Join the Newsmax Community
Read and Post Comments
Please review Community Guidelines before posting a comment.
 
Get Newsmax Text Alerts
TOP

Newsmax, Moneynews, Newsmax Health, and Independent. American. are registered trademarks of Newsmax Media, Inc. Newsmax TV, and Newsmax World are trademarks of Newsmax Media, Inc.

NEWSMAX.COM
MONEYNEWS.COM
© Newsmax Media, Inc.
All Rights Reserved
NEWSMAX.COM
MONEYNEWS.COM
© Newsmax Media, Inc.
All Rights Reserved