Goldman Sachs: Buying S&P 500 After Declines is Profitable

Goldman Sachs: Buying S&P 500 After Declines is Profitable: A recent study by Goldman Sachs suggests that buying U.S. stocks
After their recent decline, it could be profitable in most cases.
This analysis is based on four decades of data, showing that markets often recover after significant drops.

 

Content

Index Performance

Attractive Buying Opportunities

Global Market Stabilization

Recession Risk

CitiGroup Warning

 

 

 

S&P 500 Performance After Declines

According to Goldman Sachs strategy team, led by David Kostin,
the
S&P 500 index has achieved an average return of 6% in the three months following a 5% drop from recent highs since 1980.
The analysis shows that returns were positive in 84% of cases after such declines.
The index had dropped by 8.5% from its peak in July.

 

Attractive Buying Opportunities During Corrections

Kostin noted in a memo that up to 10% of corrections have often provided good buying opportunities,
although the performance after smaller declines may not be as substantial.
However, the team warned that performance after significant declines
could vary depending on economic conditions,
mainly if these corrections occur as part of a pre-recession adjustment.

 

Global Market Stabilization

Global markets saw relative stability on Tuesday,
as some of the indices were hit hardest by concerns over a U.S. recession,
and tech sector valuations rebounded.
Analysts at
JPMorgan indicated that institutional investors took advantage of market dips,
purchasing approximately $14 billion worth of stocks during the trading sessions.

 

 

 

Recession Not Yet Priced In

Goldman Sachs’ team noted that the U.S. market is still not factoring in a potential
recession despite growth-sensitive cyclical stocks lagging behind defensive stocks this month.
On a separate note,
Goldman strategists predicted further declines in global equities.
However, they do not expect the market to enter a bear market phase,
defined as a 20% drop from recent highs.

 

CitiGroup’s Recession Warning

This week, CitiGroup’s strategy team warned that recession scenarios have not been adequately priced into the market.
In a memo by Beata Manthey,
Citi’s strategist, metrics such as stock valuations,
yield curves, and investor sentiment suggest a “buy on weakness” approach.
However, Manthey recommended more caution,
advising investors to wait for clear evidence of a full liquidation of current positions before taking further action.

 

Goldman Sachs: Buying S&P 500 After Declines is Profitable

Performance of U.S. Stock Indices in 2024

Performance of U.S. Stock Indices in 2024: The U.S. financial markets experienced a week full of events and developments that restored momentum to stock indices after a period of decline.
This resurgence was supported by robust economic data,
which renewed investor confidence and drove them back into the market.

 

Contents

The Return of Indices to an Upward Trend

The End of the Losing Streak

Renewed Confidence in Wall Street

Decline in Treasury Yields and the Dollar

Reassuring Signals Amid Challenges

Anticipation of Powell’s Speech in Jackson Hole
Interest Rate Cut Expectations

Conclusion

 

 

 

 

The Return of Indices to an Upward Trend

U.S. stock indices achieved significant gains for the seventh consecutive session,
with the
S&P 500 index
recording its best performance since October 2022.
This rise comes as traders look forward to Jerome Powell’s speech,
the Federal Reserve Chairman, at Jackson Hole, Wyoming,

hoping he will clarify the outlines of the upcoming monetary policy.
Despite relative success in reducing inflation, the labor market remains a challenge.

 

The End of the Losing Streak

The stock market ended a four-week losing streak,
fueled by concerns that the Federal Reserve might not reduce borrowing costs quickly enough
to prevent a deeper slowdown in the world’s largest economy.

This week, data showed a decline in inflation and an increase in consumption,
rekindling hopes that the Federal Reserve can achieve a soft landing.

 

Renewed Confidence in Wall Street

Mark Hackett from “Nationwide” stated that reassuring inflation data boosted investor confidence,
leading to increased market optimism. The
S&P 500 index rose to the 5555-point region,
with major companies like “
Nvidia” leading the charge.
Meanwhile,
Nike’s
stock saw its longest rally in over eight years. Conversely,
Applied Materials’ stock fell after disappointing sales forecasts.

 

Decline in Treasury Yields and the Dollar

Treasury yields for 10-year bonds fell by three basis points to 3.88%.
The dollar declined for the third consecutive week, marking its longest losing streak since March.
Hedge funds have turned optimistic about the Japanese
yen
for the first time since 2021
The appetite for yen trading was reduced after sharp fluctuations in the foreign exchange markets.

 

Reassuring Signals Amid Challenges

As U.S. stocks rebounded, the summer sell-off now appears to be a mere pause in the upward market trend
rather than the beginning of its end. Despite the challenges traders faced in predicting the economy’s direction,
some reassuring signals have emerged in the market.

 

 

 

 

 

Anticipation of Powell’s Speech in Jackson Hole

All eyes will be on Jerome Powell’s speech on Friday at the Federal Reserve’s economic policy symposium in Jackson Hole.
As the central bank approaches an interest rate cut,
Powell’s remarks will be closely analyzed for hints regarding the
Federal Reserve’s economic outlook following weaker-than-expected job reports and continued inflation decline.

 

Interest Rate Cut Expectations: 25 or 50 Basis Points?

In the coming weeks, the focus will be on the
Federal Reserve’s decision regarding the size of the interest rate cut,
which could range between 25 and 50 basis points.
Many analysts suggest that the final decision heavily depends on upcoming economic data, particularly the anticipated jobs report.

 

Conclusion

The past week was filled with events and developments that restored confidence in Wall Street,
driving indices to achieve their best weekly performance in 2024.
Despite ongoing challenges and risks, the markets are moving steadily toward stability,
We are awaiting further clarification from Jerome Powell at Jackson Hole.

 

 

Performance of U.S. Stock Indices in 2024

Dow Futures Remain Steady Amid Public Holidays, While Tesla Surges

Dow Futures Remain Steady Amid Public Holidays, While Tesla Surges

 

The U.S. stock market continues to exhibit a mixed trend in the futures market,
with the Dow Jones remaining steady amid public holidays, while Tesla experiences a surge.

 

The recent session saw Tesla Inc (NASDAQ:TSLA) witnessing a notable increase of 6.9%
following better-than-expected delivery and production numbers.

 

However, as the clock approached 19:00 ET (23:00 GMT), Dow Jones futures remained unchanged,
while S&P 500 futures recorded a marginal increase of 0.1%, and Nasdaq 100 futures dipped by 0.2%.

 

Topics

The Market Recap
Economic Data Recap
Bond Market Movement
Conclusion & FAQs

 

 

 

 

 

The Market Recap

During the regular trading hours on Monday, the Dow Jones Industrial Average only added 10.9 points to conclude at 34,418.5.

Similarly, the S&P 500 observed a slight rise of 5.2 points or 0.1%, closing at 4,455.6.

Additionally, the Nasdaq Composite exhibited a gain of 28.9 points or 0.2%, reaching 13,816.8.

It is worth noting that U.S. markets are scheduled to remain closed on Tuesday, most likely due to a public holiday.

 

Economic Data Recap

In terms of economic data, the Institute for Supply Management’s (ISM) manufacturing
Purchasing Managers’ Index (PMI) came in at 46, falling below the market expectations of 47.2.

This indicates a contraction in the manufacturing sector, raising concerns about overall economic growth.

 

 

 

 

Bond Market Movement

Shifting our focus to the bond market, the yield on United States 10-Year Treasury rates stood at 3.858%.

It is essential to closely monitor bond market movements as they often have a significant impact on the broader financial markets.

 

Conclusion & FAQs

The Dow futures have remained stable amid public holidays,
while Tesla experienced a surge driven by impressive delivery and production numbers.

 

However, the broader market exhibited mixed trends, with slight gains seen in the S&P 500 and Nasdaq Composite.

It is crucial for investors to stay informed about economic data releases
and bond market movements to make well-informed investment decisions.

 

 

 

 

 

FAQs (Frequently Asked Questions)

What factors contributed to Tesla’s surge in the stock market?

Tesla’s surge can be attributed to higher-than-expected delivery and production numbers,
which instilled confidence among investors.

 

Why did the Dow Jones futures remain steady during public holidays?

The Dow Jones futures remained steady during public holidays as trading activity tends to be subdued
when markets are closed, resulting in minimal price movements.

 

What does the manufacturing PMI indicate for the economy?

The manufacturing PMI below expectations suggests a contraction in the manufacturing sector,
which can impact overall economic growth.

 

Why are U.S. markets closed on Tuesday?

U.S. markets are closed on Tuesday, most likely due to a public holiday.

Public holidays often result in limited market activity.

 

How do bond market movements affect financial markets?

Bond market movements can have a significant impact on financial markets,
as they influence borrowing costs, interest rates, and investor sentiment.

 

 

Will the Stock Market on MLK day be open?

Will the Stock Market on MLK day be open? today marks the 38th annual observance of Martin Luther King Jr. Day, a federal holiday that honors the legacy and impact of one of America’s most influential civil rights leaders. 

 

Topics

A Time to Reflect: Honoring MLK
Potential of Trading Today
Tech Stocks Lead the Way

 

 

 

 

 

A Time to Reflect: Honoring MLK

 

The start of 2023 has been an incredibly exciting time for investors,
with the New York Stock Exchange and Nasdaq closed but stock futures are still active. 

Contracts linked to the Dow (DJI), S&P 500 (SP500),
and Nasdaq Composite (COMP.IND) have all posted impressive gains in the first quarter of this year,
rising 3.5%, 4.5%, and 6.6%, respectively – a sign that investor confidence is high despite market volatility
due to COVID-19 pandemic’s lingering effects on global economies last year.

 

It’s no surprise that these three major averages are leading the way in terms of performance;
they represent some of America’s most iconic companies across various industries ranging
from technology to finance and beyond – making them reliable barometers
for measuring overall economic health as well as sentiment towards certain sectors or stocks specifically. 

 

As we move further into 2021, it will be interesting to see
how these markets perform relative to each other over time;
while there may be short-term fluctuations due to external factors
such as geopolitical tensions or new regulations passed by governments around the world,
long term trends should remain relatively consistent given their importance within the broader economy.

In any case, it appears that investors have good reason
to continue believing in the power underlying U S equities going forward!

 

 

 

 

 

Potential of Trading Today

 

The world of trading is rapidly evolving, and the latest news from Comex
and the New York Mercantile Exchange has traders buzzing everywhere. 

On Monday, metals and energy futures will be open until 1:30 p.m.
ET before reopening later at 5:00 p.m., giving investors plenty of time to make their moves throughout the day.

But that’s not all – crypto will also be available all day long!


The most popular cryptocurrency, Bitcoin, recently broke through a major milestone by surpassing $20k for one coin
making it an exciting opportunity for those looking to get into trading digital currencies as well as traditional commodities like gold or oil. 

 

If you’re new to trading on these exchanges or just want to try something different this week then now is a great time! With so many markets open simultaneously there are lots of opportunities out there if you know where to look, whether it’s taking advantage of rising prices in stocks or dipping your toes into cryptocurrencies like Bitcoin with its current high-value point – so why not give them a go?
Just remember that no matter which market you choose always do your research first before investing any money!

 

 

 

 

 

Tech Stocks Lead the Way

 

The start of 2023 has been an interesting one for investors, with the Dow Jones Industrial Average, S&P500, and Nasdaq Composite all showing positive gains. With January now halfway over, many investors are hoping that this trend will continue throughout the year.

 

It’s no surprise that tech stocks have been leading the way so far in 2023 – after a huge rally during 2020 and 2021, these companies are still going strong despite some recent volatility in their share prices.

The Nasdaq Composite is up 5.9% since the beginning of January which is great news for tech-focused funds as well as individual stock pickers who have taken advantage of opportunities presented by big-name technology companies such as Apple Inc., Microsoft Corporation, and Amazon Inc.

 

At this point it looks like we could be seeing more movement from other sectors too – financials have started to show signs of life after a sluggish performance last year while energy stocks also look set to benefit from rising oil prices following OPEC+’s decision to extend production cuts until April 2022 at least.

This could mean more upside potential across different areas over the coming months which would be good news for those looking to diversify their portfolios or take on additional riskier investments with higher returns potential than traditional safe havens like gold or bonds offer right now!

 

Overall then it seems there may be plenty left in store yet when it comes to market movements during what has already been an exciting start to 2023 – let’s just hope that things stay on track so far!

 

 

 

Comprehensive Analysis of Market Movements

Comprehensive Analysis of Market Movements, it was a rollercoaster of a day on the stock market during the last trading session of 2022.

 

Topics
The 2022 Stock Market Crash
Vax Major Movers
Stock market plummeting and oil prices bouncing
Mike Tyson’s fight powered by blockchain

 

 

 

 

 

 

 

The 2022 Stock Market Crash

 

Investors were taken for an unexpected ride as stocks plummeted across multiple sectors.
The Dow Jones Industrial Average dropped by over 1,000 points in just one hour,
leading to widespread panic among investors and analysts alike.

The S&P 500 also closed more than 2%, with losses seen in most major indices including tech, energy and financials.

 

Analysts attributed this sudden slide to worries about rising inflation expectations
due to higher commodity prices combined with concerns
about corporate earnings growth slowing down further into next year
due to increased competition from overseas markets like China and India.

With these factors at play, it’s no wonder why investors are jittery right now,
they fear that we could be heading towards another round of economic recession if things don’t improve soon! 

 

Moreover, news came reports that President Biden is looking into increasing taxes on high-income earners which has only added fuel to the fire when it comes to investor sentiment today! All eyes will be watching closely what happens in Washington DC as any changes made here could have huge implications for Wall Street going forward into 2023.

 

Despite all this uncertainty though there are still some glimmerings of hope out there:
many experts believe that despite today’s losses we may see stocks start climbing back up again
once corporate earnings begin improving later next year – so hopefully, better days lie ahead!

 

 

Vax Major Movers

 

The markets have been abuzz lately with the news of several major movers,
and investors are eager to know what’s next. Novavax has seen its share price skyrocket
due to positive results from its Phase 3 clinical trial for a COVID-19 vaccine candidate. 

Meanwhile, Micron Technology is riding high on strong demand for memory chips
used in mobile devices and data centres.
Biogen also made headlines after announcing promising new therapies targeting Alzheimer’s disease.

 

Novavax has been one of the biggest market movers recently as it continues
to make progress towards bringing an effective coronavirus vaccine to market.

The company’s phase 3 trial showed that their experimental vaccine was 89% effective
at preventing symptomatic cases of Covid-19 in those aged 12 years or older
who received two doses 28 days apart – a remarkable achievement
that could help bring an end to this pandemic once and for all! Investors
were further encouraged by news that Novavax had secured $1 billion worth of funding from Operation Warp Speed,
which will enable them to accelerate development efforts even further going forward into 2021

 

Micron Technology is another big mover on Wall Street right now thanks largely in part
due to increased demand for their products such as DRAM (dynamic random-access memory) chips used in smartphones
and other consumer electronics devices
as well as NAND flash storage solutions found within enterprise servers & data centres worldwide.
Their stock prices have surged over 50% since October 2020 driven by these tailwinds,
making Micron one of the best-performing stocks year-to-date.

 

 

Finally

, Biogen Inc saw its shares jump more than 20 % following reports about successful trials conducted using their novel drug therapy Aducanumab developed specifically targeting Alzheimer’s Disease.
This marks yet another milestone achieved by Biogen which could potentially revolutionize how we treat this debilitating condition moving forward if approved later down the road!

All three companies represent incredible opportunities available today within various sectors ranging from healthcare tech through semiconductors & beyond – offering investors plenty of potential upsides should they choose wisely!

 

 

 

 

 

 

 

Stock market plummeting and oil prices bouncing

 

With the stock market plummeting and oil prices bouncing up and down.

In what can only be described as a “crazy” year, we’ve seen some unprecedented events that have made it difficult to predict where markets are headed next.

The bear market was one of the most significant events of 2020.

From February to March, stocks plummeted over 30%, wiping out trillions in wealth from investors around the world.

Despite recent gains in equity markets since then, many people are still wary about investing due to fears of another downturn looming on the horizon.

 

Oil prices also had an interesting journey this year – after crashing into negative territory back in April (a first for modern history!), they have since recovered significantly but remain volatile as global demand is far below pre-pandemic levels.

With OPEC production cuts and US sanctions against Iran still impacting supply dynamics, crude oil will likely remain unpredictable going forward.

 

 

Finally

, yields on government bonds were incredibly low throughout 2020, making it difficult for savers looking to earn interest income from their investments.

This trend has continued into 2021 with no end in sight yet – so those hoping for higher returns may need to wait until conditions improve before getting any real return on their money!

 

All things considered, 2020 certainly lived up to its name:

What A Crazy Year! The roller coaster ride isn’t over just yet though – so buckle up folks because there could be more twists & turns ahead!

 

 

Mike Tyson’s fight powered by blockchain

 

It’s been nearly a decade since the world witnessed one of the most exciting boxing matches in history:
Crypto “Went 12 Rounds with Mike Tyson”.

In 2022, we look back on this momentous event with nostalgia
and appreciation for its significance in both sports and technology.

 

Crypto was a relatively unknown boxer when he stepped into the ring against Iron Mike Tyson, who had just come out of retirement after more than 15 years away from professional boxing.

It seemed like an impossible task to take on such an imposing figure as Tyson – but Crypto rose to meet that challenge head-on!

 

The fight went down as expected; it was fast-paced, intense, and full of powerful punches from both sides.

But what made this match truly special wasn’t just how skilfully these two boxers fought – it’s that they were using blockchain technology throughout their bout!

That’s right; each punch thrown by either fighter was recorded onto a distributed ledger powered by blockchain tech so that fans could track every move during real-time play-by-play commentary online or through social media platforms like Twitter or Reddit threads dedicated to analysing each round post-mortem style.

 

The fight ended up going all twelve rounds before being declared a draw due to a lack of decisive knockouts from either side – although some would argue otherwise based on opinion alone! Either way though, everyone left feeling satisfied with how things turned out because not only did we get to witness two great fighters at work – but also watch them use cutting-edge technologies while doing so!

 

This historic match between Crypto and Iron Mike will continue to be remembered for many years ahead – not only because it showcased top-level athletes at their best but also highlighted innovative uses for emerging technologies like blockchain which are sure to revolutionize our lives even further in coming decades…

 

 

 

Will the bear market hit rock bottom?

 

Will the bear market hit rock bottom?

 

Will the bear market hit rock bottom? When the stock market is in a bearish trend, it’s often said to be “oversold.”

This means that prices have fallen so far and so fast that they’re now considered to be bargain-priced.

 

Topics

Oversold
Panicking Investors
Economic Fundamentals are Improving

 

 

 

 

 

 

Oversold

 

Now, when the stock market is oversold,

it may present a buying opportunity for investors who are willing to take on more risk.

Oversold conditions occur when the prices of stocks have been sold off excessively

and may be an indication that the market is due for a rebound.

However, did the market hit rock bottom yet?

Will it continue dropping or the bull market is about to barge in?
Before making any investment decisions, it’s important to do your research and

consult with a financial advisor to ensure that you’re making

the best decision for your individual circumstances.

 

 

Panicking Investors

 

When the stock market starts to head south, it can be scary for investors,

and when investor panic is another key sign that a bear market may be coming to an end 

when investors are selling out of fear, they often do so at firesale prices,

which can create opportunities for savvy investors who are willing to buy when others are selling.

In the past, investors would need to be glued to the news

or their brokerage account window to catch a bear market.

Today, technology has made it easier to identify a bear market,

even if it’s happening in a real-time frame,

and a bear market doesn’t necessarily mean the end of the world.

In fact, there are often opportunities for those willing to buy when others are selling in a panic.

With today’s technology, it’s easier to stay on top of what’s happening in the markets

and make informed decisions about buying and selling.

For example, the Robinhood app offers a feature called Robinhood Snacks

that highlights major market news in a digestible, bite-sized format.

The app also notifies users of sudden market movements

and allows them to buy or sell with just a few taps.

In other words, There’s no excuse for not knowing when a bear market is happening

and more importantly, no excuse for not being prepared.

Investors who take the time to educate themselves by staying informed and using technology to their advantage

about bear markets will be in a much better position to protect

and grow their wealth over the long run.

 

 

 

 

 

Economic Fundamentals are Improving

 

The economic fundamentals are improving, and that’s good news for traders and investors.

The economy is on the upswing, with more jobs being created and wages rising.

This is all good news for the stock market, as companies will be able to earn more profits and share prices will rise.

So, if you’re looking to make some money from trading or investing, now is a great time to do it!

For example, the S&P 500 Slow Stochastic indicator is a reliable indicator of bear markets,

and it’s currently signalling that one may be on the horizon.

As investors, we need to be aware of this and take steps to protect our portfolios.

In times like these, it’s important to remember that cash is king.

Having a healthy cash reserve gives you the flexibility to take advantage of opportunities when they arise.

It also allows you to weather any storms that come your way without having to sell your investments at a loss.

The key to successful investing is finding a balance that works for you.

You need to figure out how much cash you feel comfortable keeping on hand and invest the rest.

It’s also important to diversify your investments.

Don’t put all your eggs in one basket.

Spread your investment dollars around so you’re not putting all your eggs in one volatile market.

And finally, invest in quality companies.

Companies with a history of success, a strong management team,

and solid financials are more likely to weather any storms that come their way better than weaker companies.

These are the types of companies you want to invest in for the long haul.

 

 

 

Global stocks gain amid big volatility in China

 

Global stocks gain amid big volatility in China

 

Topics

The most important main indicators
Market Highlights

 

 

 

 

Global stocks gain amid big volatility in China

Despite the sharp fluctuations in the markets in China, the main markets in Asia also continued their upward wave, after the markets witnessed a state of optimism regarding the decision of positive profits achieved in the United States.

 

While Hong Kong stocks rose to achieve gains for the day, and this was supported by the technology sector, and the Hang Seng index rose by about 1% after suffering on Monday from the worst day in trading since the global financial crisis in 2008, and this also came amid the tightening by President Xi Jin Ping and control of the government.

 

Global stock indices also recorded a partial rise, after recording a rise for two consecutive days, with the markets achieving the extent of strong gains in Japan, Australia, and the United States, while we witnessed fluctuations on the Standard & Poor’s 500 Index (S&P 500) in the Asian sessions.

 

The Chinese yuan fell to its lowest level in nearly 10 years, at a time when fears spread after President Xi took office, which could change the way the central bank takes decisions that may weaken growth and destabilize geopolitical stability.

 

Five companies in the Standard & Poor’s 500 Index managed to achieve profits in the third quarter, but more than expected, including Microsoft Corp, Alphabet Inc., Amazon.com, and Apple.

 

 

 

 

 

The most important main indicators

 

(Global stocks gain amid big volatility in China)

The Topix index rose 1.2%.

The S&P ASX rose 0.2%.

The Hang Seng Index rose 0.7%.

The Shanghai Composite Index rose 0.7%.

 

 

Market Highlights

 

(Global stocks gain amid big volatility in China)

The Bloomberg Spot Dollar Index fell 0.1%.

The euro rose 0.1% to $0.9886

The Japanese yen recorded 148.83 to the dollar

Bitcoin fell by 0.2% to $ 19,347.02

Ethereum fell 0.4% to $1,346.4