July 9, 2021
The post-pandemic run has been marked by staggeringly low volatility and all-time highs in both the S&P 500 and Dow Jones. However, an analyst at Goldman Sachs says that the run is about to close. They project a 4300 year-end finish for the S&P, which is slightly lower than this last week's high. In fact, the slowdown could come quickly as they see rising rates, higher inflation, and tax changes impeding the upside in the near term. The analyst says most of the gains can be attributed to the low rate environment and easy money. While the analyst's best bet is on growth stocks lots of factors could pave the way for value to outperform. Goldman’s analysts’ best advice was to focus on pricing power and margins to fight what they see as a slowing market and a slowing economy.
FINSUM + Magnifi: A year-end close of 4300 promises both volatility and some slumps. Funds that benefit from volatility or reverse performance will combat a second half that looks like this.
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