11/28/2023 0 Comments Save cash now stock marekt![]() "Receding inflation, an end to Fed tightening, accelerating growth – these are all the makings of a Goldilocks environment for stocks, potentially," Kron summarized. ![]() Despite restrictive monetary policy, economists across the market, including Goldman Sachs' own Jan Hatzius, believe that there's a far lower chance of a recession than there was at the beginning of the year. These include strong performance among bank stocks after the banking crisis of earlier this year, a recovery in oil prices after trending downwards for the past few months, and higher advertising spending after a slowdown in the first half of the year.Īs for the broader economy, it seems as though the Federal Reserve's rate hikes have been doing their job, with core PCE inflation only rising 4.1% year-over-year. Kron pointed out a number of positive signs of both stock-market and economic health that cropped up over the last month. In a note to clients published August 1, Kron broke down what he's seeing in markets right now - and more importantly, what stocks Goldman Sachs analysts are bullish on right now. ![]() Stocks do not look cheap, but there is little doubt that the macro news - higher growth, lower inflation - is a more equity-friendly mix than was expected," wrote Steven Kron, director of Americas equity research at Goldman Sachs. "US equities are caught between macro news and valuation. But the strength of the stock market rally could potentially be its own undoing, as valuations outpace reality and investors might drag the market back down to earth. With this influx of good news has come a wave of investor optimism, and strong sentiment has pushed the S&P 500 higher than many analysts were expecting it to go this year. Investors have cheered lower inflation, signals that the Federal Reserve will end its rate hiking cycle, and data that indicates the US might just avoid a recession after all. Goldman Sachs compiled the 22 best investing ideas from its US analysts, regardless of sector.But it's easy to get swept up in blind optimism, and investors need to proceed with caution.Markets have rallied on the back of strong earnings, good macroeconomic data, and bullish sentiment.Santander Regular Saver offers 2.Account icon An icon in the shape of a person's head and shoulders. Leeds Building Society launches two high-interest savings accounts State pension rising by at least 5.5% as wages element 'locked in' Over five years, the All-Share has grown just 1.68 percent, which is highly disappointing. The S&P 500 US index of top stocks has fallen 18.01 percent year-to-date, while the UK’s FTSE All-Share has dropped 5.75 percent. Money left in savings accounts is still being eroded in real time as consumer prices rise.īut with stock markets falling, many will be tempted. Yet cash returns are still far below inflation, which stood at 9.9 percent in August. It won't be long before standard one-year fixed rate bonds pay four percent and more. Some current accounts pay more, for example, Nationwide FlexDirect pays five percent, but only on balances up to £1,500 for a maximum 12 months. Rates are getting there, as BLME currently pays 3.75 percent a year for five years, while Monument Bank pays 3.65 percent. That would be great news for long-suffering savers, particularly older people who rely on savings interest to boost their pensions. If that happens savings rates will shoot past the four percent mark for the first time in an age. The BoE is likely to hike again at its next meeting on September 22, possibly by 0.75 percent to 2.50 percent.
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