Business & Investment

Goldman Sachs is very bullish on this year’s recovery.But this is something that may not work

US stocks are set to start earnings bumper week in a conservative way.

+ 1.61%
+ 0.20%
+ 0.60%

And Microsoft
+ 0.44%

It is set to report earnings during an action-packed week that also includes the first policy meeting of the Federal Reserve Board of Joe Biden’s administration. actually, Almost a quarter According to FactSet data, some of the S & P 500 reported results, and these companies account for 39% of the index in market value.

With COVID-19 pandemic Vaccine deployment With the inauguration of President Joe Biden, it continues to receive attention throughout the United States.Investors are also watching carefully US Fourth Quarter GDP Measures Economists surveyed by MarketWatch on Thursday expect a 4% increase. Attention will also be focused on the recovery in 2021.

In us Today’s call, Goldman Sachs
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Analysts were bullish on the recovery of the US economy in 2021, but said there were three major risks to recovery. Investment banks forecast gross domestic product growth of 6.6% this year, 2.5 points above the consensus. It was expected to reduce the viral risk posed by mass vaccination, as well as financial support for personal consumption to promote the “middle-aged consumption boom” and “very strong growth” in 2021.

According to analysts, the most serious downside risk was the threat of a new vaccine-resistant strain of coronavirus that causes COVID-19. A new vaccine and another vaccination are required. “While new vaccines are being developed, virus-sensitive spending may decrease, new vaccines may be approved within five months, but the consumption boom could be delayed until 2022. Yes, “said Goldman Analyst, led by Jan Hatzius. With a memo. They added that preliminary evidence suggests that the current vaccine protects against new British strains, but is more mixed for South African variants.

The second risk of concern is that mutations in the virus “significantly raise the bar” for herd immunity by increasing infectivity or reducing vaccine efficacy. This scenario will also slow the consumption boom. Finally, they said that even if vaccination deployments and warm weather reduced the spread of the virus, the downsides would be limited, but consumers would be more cautious than expected.

Even more encouraging, there are some significant additions to Goldman’s 6.6% GDP growth forecast, including the rapid spending of savings accumulated during the COVID-19 pandemic and the impact of further fiscal stimulus in 2021. There was a runout risk.


This Morgan Stanley

The graph shows the NFIB Small Business Optimism Index branching from Russell 2000
+ 1.28%

The index suggests that sentiment may have turned negative, while small cap stocks are rising.


US Stock Futures

+ 0.29%

+ 1.04%

At the beginning of the busy earnings week, it showed a slightly higher point prior to the opening. European stocks also rose in early trading, Helped by profits Report of acquisition by online retailer Boohoo
+ 3.51%

+ 5.01%
Asian stocks rose overnight Some economies Recovery from the COVID-19 pandemic will begin as the blockade is eased and the vaccine is deployed.


Biden Top aide started discussion With a group of moderate Senate Republicans and Democrats on Sunday with a $ 1.9 trillion coronavirus bailout package.

Biden Revive coronavirus travel restrictions South Africa has also been reportedly added to the list for foreigners coming to the United States from most of Brazil, the United Kingdom, Ireland and Europe on Monday.

The White House announced details on Monday Buy a new American executive order The president will sign it. This raises thresholds and pricing for domestic products before the government purchases from non-US suppliers.

China overtakes the United States The best destination in the world According to UN figures released on Sunday, last year’s new foreign direct investment.

Baird just days before Q4 earnings Raised the price target Electric car maker Tesla
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“The stock price bias is still up,” he said in a note on Monday, from $ 488 to $ 728 per share.

+ 51.08%

stock 42% surge in pre-market transactionsAfter rising 51% on Friday. The profits came after short-selling company Citron Research and speculative buyers organizing Reddit clashed over video game retailers.

+ 17.79%

stock 34% surge in pre-market transactions, The cinema chain raised $ 917 million in debt to survive the COVID-19 crisis.

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Goldman Sachs is very bullish on this year’s recovery.But this is something that may not work Goldman Sachs is very bullish on this year’s recovery.But this is something that may not work

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