Skip to main content

Why Goldman Sachs thinks the Bull Market will continue



The World Stock Markets have nosedive over the past two weeks and has sparked concerns among many investors that a long-feared bear market might finally have begun.

 The S&P 500 index is 7% below the all-time high. Goldman,  says the firm is confident that the bull market remains intact even despite the recent sell-off across the global markets.

 5 Reasons Goldman Is now Bullish:


  •  S&P 500 EPS is predicted to rise to 21% year-over-year in the third quarter.
  •  Economic expansion is still in a mid-cycle.
  •  Corporate return on equity is rising and at a high for this bull market.
  •  Only 37% chance of a recession in the next 3 years according to Goldman's Economists
  •  Return on Equity is rising 


Concern For Investors

A big concern for the bears of the investment world this year has been stock valuations that seem to be stretched. Goldman counters that rapid earnings growth has fueled only minor increases in stock prices this year.

As an example of strong business fundamentals, Goldman cites the recent trend of trailing 4 quarter ROE for the S&P 500 as a whole. It reached a gobsmacking 17.5% in the second quarter, up by 85 basis points from the first half.

Despite all the positives, Goldman has warned about headwinds that will limit stock price gains, including rising interest rates and tariffs.

www.ecocropsinternational.com
Labels:

Comments

Post a Comment

Popular posts from this blog

Trumps biomass policy

In 2007 the USA Federal Government passed the US Renewable Fuel Standard which required ethanol blending with domestic oil in large quantities with frequent increases in amounts of ethanol being used.  The bill was passed to reduce the USA carbon footprint and increase the amount of renewable biofuel being used in the USA. Under the Trump administrations, they have been far less supportive of the biomass blending mandate, granting biofuel waivers to major industry players and allowing the trading of biomass credits to develop. Despite the less than active support for biofuel domestically Trump has been pushing his trade negotiators to get big concessions from his Chinese counterparts by asking them to lower their tariffs on biomass in particular biofuel. China's ethanol demand is expected to grow nearly sevenfold as the country prepares to introduce E10 fuel throughout the country next year. E10 fuel is a fuel using 10% ethanol and 90% petrol. U.S. trade negotiato...
Post a Comment
Read more

China preparing solar farms in Space

Ecocrops internationa l reports that the Stations would orbit 22,000 miles from Earth and would weigh over 1,000 tons, that is 600 tons more than the International Space Station.  They plan to deploy small and medium stations between 2021 and 2025 and a megawatt level satellite in 2030. Space-based solar power has two major advantages over Earth-based solar power:  due to the orbit they can collect energy 24 hours a day, and they collect more energy as the sunlight is not filtered by the Earth’s atmosphere. Under the plans, huge satellites would be put into orbit to collect the sunlight with huge solar rays.  Once the energy is collected it would be sent back to receiving stations on earth as microwaves.  On Earth, these microwaves would be converted to electricity and fed into the grid. Due to the huge size of the satellites, the Chinese are proposing to fabricate with 3D printer technology and then assemble in the Earth orbit with robots. Pang Zhihao, a re...
1 comment
Read more

Markets just saw the best earnings season since the financial crisis, and nobody cares

Even mildly pessimistic guidance has investors spooked amid macro headwinds Earnings for S&P 500 companies grew by 25.8% in the third quarter, the strongest performance since the third quarter of 2010, when companies benefited from very attractive, recession-era comparable earnings. Nevertheless, from the start of earnings season to the close of trade Friday, the S&P 500 index SPX, +0.22% has fallen 2.7%, the Dow Jones Industrial Average DJIA, +0.49% 1.1%, and the Nasdaq Composite Index COMP, -0.15% 5.5%. “Third quarter earnings were outstanding both on earnings and revenue growth, the percentage of companies beating expectations, and the magnitude of those beats,” Michael Arone, chief investment strategist at State Street Global Advisors. But the selloff that accompanied these announcements is a testament to the fact that “Wall Street doesn’t care what you’ve done in the past. It’s all about what you’re going to do next quarter,” Arone said. The pairing of r...
1 comment
Read more