Home / Business / Goldman Sachs says the S&P 500 will increase 14% by 2021, this is a road map.

Goldman Sachs says the S&P 500 will increase 14% by 2021, this is a road map.



In the hope that a massive stimulus will accompany President Joe Biden’s new administration to become President, Goldman Sachs predicts the S&P 500 will end in 2021 at 4,300 points. More

in Call of the dayDavid J. Kostin, chief equity strategist at the U.S. investment bank, maps 4,300.

Goldman sees the S&P 500 SPX.
It is up 14% for the full year after one of the world’s most watched indices closed at 3,756 to end 2020.The index is forecast to grow another 7% by 2022 to 4,600.

The two-digit 2021 yield forecast is the investment bank’s favorable forecast for the US economy – real gross domestic product growth of 6.4%, compared with consensus 4.2%.

Adding the economic momentum to equities is a dramatic increase in earnings per share (EPS), a rebound from the dire impact of the COVID-19 outbreak on corporate profits. Goldman expects EPS to jump 31% in 2021, after a 17% drop in 2020.

Along with EPS is a strong profit margin forecast, which Goldman expects to surpass the bottom-up consensus forecast. The increase in profit margins was largely driven by operating leverage as well as cost controls such as labor.

Stocks with high operating leverage are better in 2020, and Goldman expects that trend to continue through this year due to strong economic growth.

In many ways, the S&P 500’s 18% rise in 2020 was helped by the five biggest stocks: tech giant Facebook FB.,
Amazon AMZN,
Apple AAPL,
Microsoft MSFT,
And Alphabet GOOGL.
These stocks returned 56%, compared to 11% growth from the remaining 495 companies.

However, Goldman cautions that investors are content about antitrust risks.

While China’s antitrust action destroyed the performance of China’s tech stocks in just eight weeks, most markets did not respond to the Justice Department’s lawsuit against Google and the Federal Trade Commission’s lawsuit against Facebook.

Closing the road map to 4,300 is Goldman Sachs’ recommended sectoral weighting.The investment bank has information technology, healthcare, industrial and materials classified as overweight, while communications services, raw materials for consumers, utilities and real estate. Sap has little weight

buzz

A day after Donald Trump became the first president to be sued twice, Biden is scheduled to propose a $ 2 trillion increase in fiscal spending to help the U.S. economy get through the outbreak. Of COVID-19, according to CNN.

Alibaba HK: 9988
And Tencent HK: 700
Shares skyrocketed in Hong Kong and Baidu soared on the Nasdaq futures market after reports that American investors would not be barred from investing in the Chinese internet giant.

It’s a big day for the data, 965,000 Americans filed for the first jobless benefit last week, estimated at around 800,000, up from 787,000 two weeks ago. The number of unemployment claims continues to be 5.271 million, higher than the estimated 5 million, but Federal Reserve Chairman Jerome Powell’s EST speech on the economy is likely to be the star of the economic show.

The National Highway Traffic Safety Administration has asked electric vehicle maker Tesla TSLA to
To voluntarily recall 158,000 Model S and Model X vehicles after it was tentatively concluded that a potential defect in the vehicle display could affect safety.

Read more: He started buying Tesla for as little as $ 7.50, and now he retires at the age of 39 for $ 12 million – he still refuses to sell a single stake.

Run out of crypto? According to Cointelegraph The eToro exchange platform is struggling to keep up with the “Unprecedented demand” warns cryptocurrency traders with limited liquidity, meaning there may be limitations on their orders.

positive: Bitcoin and ‘funny business’ should be regulated around the world, European Central Bank chief

Virgin Galactic Spaceflight SPCE Company
Shares rose nearly 12 percent in the New York futures exchange after ARK Investment Management filed with the Securities and Exchange Commission to launch a space exploration exchange-traded fund.

market

It seems that the days ahead are positive. Stock Market Futures DJIA FUTURES

Future SP 500

NASDAQ 100 Future
Pointing higher, setting for a strong open, with Dow pointing up more than 100 points Asian market JP: NIK

HK: HSI

CN: SHCOMP
Up across the board, while European index XX: SXXP.

United Kingdom: UKX

DX: DAX

FR: PX1
Constantly becoming green

Market optimism comes as investors catch a $ 2 trillion stimulus offer from Biden. Confidence is also fueled by intensifying tensions between the United States and China, as it appears as if foreign investors do. Americans will not be blocked from investing in Chinese internet giants.

statistics

The US Treasury is in the spotlight in our daily chart from Marshall Gittler at BDSwiss.

10-Year BX Bond Yield: TMUBMUSD10Y
It initially moved lower on Wednesday, pressured by strong demand for the 30-year bond at a $ 24 billion auction. But the collapse was reversed late in the day after the report of Biden’s stimulus plans.

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