Think about this for a moment. The stock market is comprised of thousands of companies doing business in the economy. Therefore, it only makes sense that the value of the stock market should be a reflection of the economy. As the economy ebbs and flows, so should the values of the companies that are operating within it. This idea can […]
Benchmarks finished on a mixed note on Tuesday after a Fed monetary policy report sparked concerns about “substantially stretched valuations” in Internet and bio-tech stocks. Further, Janet Yellen’s comment that federal funds rate might be raised sooner if the labor market keeps surprising the central bank dented investor sentiment. However, better-than-expected quarterly earnings results from J.P. Morgan Chase and Goldman […]
Indexes gapped up at the open and then traded in a very narrow range all session; the S&P 500 gained 0.48% and the NASDAQ 0.56%. Precious metals had a nasty session after finally looking promising for the first time in a while late last week; this is why they are a lot more difficult to chart – their actions are […]
Sam Ro
Jul. 14, 2014, 7:52 AM
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Goldman Sachs
Goldman Sachs has finally revised its year-end target for the S&P 500.
In a new note to clients, strategist David Kostin writes that he now expects the S&P 500 to end the year at 2,050, up from his previous target of 1,900.That’s a modest 4.2% gain from Friday’s close of 1,967.”We expect the equity rally […]
We’re going to open this week with a discussion of one aspect of market psychology that we hope you’ll find interesting.We believe it’s worthy of discussion because it happens often enough to be chartable, and, to a fairly great degree, its outcome is also predictable.It’s quite simply the phenomenon of the sideways moving market.Time Frames and Market Patterns We should be […]
My colleague Ryan Cooper argues that one key factor in millennials missing out on the current stock market boom is distrust in the financial system. Like very many millennials, he is apprehensive about becoming an investor, and cites numerous financial scandals from the past five years as events that have influenced this view:I hear “we’ll help you design the investment […]
Asset bubbles are notoriously difficult to identify as they are happening. Often times, they only become clear in hindsight.Having said that, Goldman Sachs’ David Kostin offers an interesting stock market chart in his team’s new US Quarterly Chartbook.It shows the sector composition of the S&P 500 by market cap since 1974. As you can see, sector bubbles manifest when […]
Amazon.comSee Also7 Books Every Leader Should Read, According To A Harvard Business School Professor Goldman Sachs Just Threw Stock Exchanges Under The Bus15 Outrageous Facts About 15 Central Park West, The World’s Most Powerful AddressMichael Lewis and his publisher have done an excellent job keeping the details of his new book, ‘Flash Boys: A Wall Street Revolt’, completely under wraps, […]
Benchmarks ended mostly lower yesterday, dragged down by weak corporate earnings results. A drop in the initial claims numbers failed to lift benchmarks to the green and the S&P 500 had to retreat from an all-time high. The index returned to the red zone considering the year-to-date period. Financials were among the biggest decliners, dragged by weak results from behemoths […]
REUTERS/Caren FirouzStocks had a fantastic year in 2013, surging 30% even as earnings growth was quite modest.
This discrepancy has more and more people freaked out that the stock market might be in a bubble.Yes, stock market valuations may be getting pricey.But Goldman Sachs’ Sharmin Mossavar-Rahmani and Brett Nelson don’t think stocks are in a bubble.They think bubble-like conditions exist when […]
