The Strategist

Goldman Sachs estimates probability of US stock market decline

12/13/2021 - 07:46

Goldman Sachs strategists see no reason to expect a significant fall in the US stock market in the coming months. The S&P 500 index, which includes the 500 largest US companies, rose to an all-time high on Friday.

Strategists at investment bank Goldman Sachs said they saw no reason to expect a significant fall in the US stock market in the coming months. Bloomberg wrote about it with reference to the message of the financial organization.

Earlier on Friday, all key US stock indexes rose despite record inflation in almost 40 years, recorded at the end of November. The S&P 500 index of the 500 largest U.S. companies rose 0.95 percent that day to close at 4,712.02 points, setting a new all-time record. 

Goldman Sachs experts, however, noted that the number of securities that provided a rally in the market was small. According to their data, 51% of growth in the S&P 500 since April this year was accounted for by shares of five companies: Apple, Microsoft, Alphabet, NVIDIA and Tesla. These same stocks account for more than 20% of the indicator's total market capitalisation. 

The difference between the market's first significant rebound after the pandemic and today's situation is that the scope of the rally has narrowed markedly, which is worrying, Goldman Sachs strategists said.

For now, however, analysts say the US market is not expected to fall and investors should invest in stocks with high growth rates and high margins.


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