When Goldman Sachs Speaks- Investors Listen

Goldman Sachs Group Inc. places a positive outlook on the stock market. Their announcement came at the time when JPMorgan Chase & Co.’s strategists reported a bullish outlook in the equity market. GS:US New York Goldman Sachs Group sees  a positive outlook on the restart of the economy.

The market looks to the re-growth of the economy and the markets have not discounted an 8% -10% credit default rate as opposed to a 14 % default rate due to the pandemic.

The S&P 500 has climbed 36% from its March 23 low provide by monetary and fiscal support. The Care Act was also a key driver in helping he economy. Thinking back to 2008 investors must look to business that will do well after the recovery in equities.

Here are some key findings in Goldman Sachs Measuring The Opening of America Report- The GS US Reopening Scale: Signs of progress, but remain at 1 (Week of May 20)

  • “Reopening at a glance: Back-to-business segments still deep in contraction, stay at home growing strong”- It’s important to note that the growth is seen in video chat, e-commerce apps, news TV online payment app, Starbucks apps, streaming media app, and food store spending.
  • Utilization of healthcare services is beginning to pick up in early May off of April troughs.
  • We were surprised by the relative strength of consumer demand for newly opened theaters.
  • While a number of “Back to Normal” categories showed modest signs of recovery, a number of “Stay at Home” categories reaccelerated.

Goldman Sachs Report Source: https://www.goldmansachs.com/insights/pages/measuring-the-reopening-of-america-20-may-2020.html

Top 8 Institutional Holders

Holder  Shares  Date Reported  % Out    Value

Vanguard Group, Inc. (The)          25,588,636           Mar 30, 2020      7.44%    3,955,747,239

State Street Corporation               19,775,826           Mar 30, 2020      5.75%    3,057,144,941

Blackrock Inc.     19,591,648           Mar 30, 2020      5.70%    3,028,672,864

Dodge & Cox Inc               12,687,088           Mar 30, 2020      3.69%    1,961,296,933

Massachusetts Financial Services Co.       11,218,642           Mar 30, 2020      3.26%    1,734,289,866

Eagle Capital Management LLC  6,799,681             Mar 30, 2020      1.98%    1,051,162,685

Bank Of New York Mellon Corporation    5,779,100             Mar 30, 2020      1.68%    893,391,069

Price (T.Rowe) Associates Inc      5,528,708             Mar 30, 2020      1.61%    854,682,969

Top  7 Mutual Fund Holders

Holder  Shares  Date Reported  % Out    Value

Vanguard Total Stock Market Index Fund              9,474,783             Dec 30, 2019       2.76%    2,178,536,855

Dodge & Cox Stock Fund               7,096,700             Dec 30, 2019       2.06%    1,631,744,231

Vanguard 500 Index Fund            6,366,570             Dec 30, 2019       1.85%    1,463,865,440

SPDR Dow Jones Industrial Average ETF  5,301,309             Jan 30, 2020        1.54%    1,260,386,214

MFS Series Trust I-MFS Value Fund           3,785,119             Nov 29, 2019      1.10%    837,836,090

SPDR S&P 500 ETF Trust 3,681,332             Jan 30, 2020        1.07%    875,236,683

Vanguard Institutional Index Fund-Institutional Index Fund           2,882,109             Dec 30, 2019       0.84%    662,683,322

 

 

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CWEB.com is not registered as an investment adviser with the U.S. Securities and Exchange Commission. Rather, CWEB.com relies upon the “publisher’s exclusion” from the definition of investment adviser as provided under Section 202(a)(11) of the Investment Advisers Act of 1940 and corresponding state securities laws.

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