Trade disputes between the US and its partners pose a risk to the stock market.
Goldman Sachs has reiterated four strategies that should keep investors on track for healthy returns.
Trade-related headlines put the stock market at risk of more volatility.
To help its clients navigate these swings, Goldman Sachs has reiterated four of its top strategies that should keep investors on track for strong returns this year.
The recommendations are not hedges against specific risks that trade disputes create for certain companies and industries. Instead, Kostin is reiterating some of his top ideas, at a time when markets are vulnerable to swings based on trade-related headlines.
These strategies are supported by an expectation that earnings growth will extend the nine-year-old bull market’s lifespan. Goldman forecasts that the S&P 500 will rise 5% to 2850 by the end of this year.
The four strategies are:
High sales growth
“Stocks with the fastest revenue growth will outperform in a decelerating economy and also offer value relative to history,” Kostin said. He anticipates that sales will drive profits, which would then drive stocks.
Goldman’s basket of stocks with high sales growth has outperformed the S&P 500 by six percentage points this year. …read more
Source:: Businessinsider – Finance