Stock market recovery on the horizon?
Hey there! The stock market's been taking a beating recently, but here's some good news - an indicator from the investment powerhouse, Goldman Sachs, has flashed. Could we be seeing a stock exchange comeback soon? Let's dive in!
Currently, the S&P 500 is in 'correction territory.' The reasons for this are plenty - global turmoil, potential recession in the US, and trade tensions just to name a few.
But don't worry, Goldman Sachs thinks the party's not over yet. In fact, they believe the current correction could soon become history.
Goldman Sachs: Hey, stocks, we've got our eye on you!
In a recent note, a team headed by Goldman Sachs strategist David Kostin wrote that the US Equity Sentiment Indicator has fallen from -0.5 to -0.6. Sounds grim, right? Well, not exactly. This drop indicates a worsening sentiment towards the US stock market. But here's the catch - given the negative sentiment, low expectations for US corporate earnings, and a big ol' pile of cash sitting on the sidelines, Goldman Sachs sees an optimistic signal.
They reckon that negative sentiment could fade away with decent corporate results and companies continuing their share buyback plans. Yup, you heard that right - Kostin himself is seeing early signs of a recovery after the recent sell-off.
Time to grab those stocks?
If Kostin's theory and Goldman Sachs' predictions are spot on, then it's a fantastic opportunity for investors to start snatching up stocks.
But remember, the Goldman Sachs indicator isn't the only factor pointing towards rising prices. For more on this, check out: Is this the ultimate time to buy tech stocks? Countercyclical boom or falling knife?
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Investing in the stock market may soon present a favorable opportunity, as Goldman Sachs predicts the current correction could soon become history. The strategist David Kostin of Goldman Sachs believes that negative sentiment could fade away with decent corporate results and companies continuing their share buyback plans.
With Goldman Sachs' optimistic signal, it could be a good time for those interested in finance to starts considering investing.
