“Dire” Europe A Lesser Safe Bet than US Economy, Goldman Strategist

    Bloomberg News reports that companies in the United States with business operations within the country are likely to perform better than those exposed to Europe. This is because, as strategists at Goldman Sachs Group Inc. stated, Europe is all set for an impending recession.




    A team of Goldman led by David Kostin revealed that while the path for growth of the United States is not certain, the economic condition in Europe is in dire condition.

    Despite the worries investors have about the US equity market, the strategists said that they believe the market can offer greater returns that are risk-adjusted compared to the recession-plagued markets in Europe.

    For US exposure, Goldman’s preference comes at a time that is turning out to be a difficult year for European businesses amidst a gas crunch, stricter central bank policy, and rising inflation. In terms of the dollar, the Stoxx Europe 600 has manifested a slide as compared to S&P 500 in the current year. It was also found that a Goldman basket of US companies with a record of 100% domestic sales performed better than one tracking with higher sales to Europe.

    A Safer Bet

    The strategy described above is just one of the four that Kostin’s team identified for driving equity performance through the year’s end. The others are the stocks of high-quality fundamentals, big dividend payers, and the so-called value shares.

    Strategists also stated that investors worried about economic contraction must own dividends, either through individual stocks or through the futures. Bloomberg News reports that dividends have been offering exposure to the investors for the fundamental growth of the S&P 500 while at the same time minimizing exposure to the risk associated with equity valuation.

    Kostin, along with his team, is keen on those quality stocks that usually score more on the metrics, which also include strong balance sheets and sales that are stable, along with earnings growth. They also anticipate that the S&P 500 will end 2022 at about 4,300 points or even higher in comparison to the close of Friday, with the assumption that the Federal Reserve tightening will lead to a consistent deceleration in the growth of the US economy.

    While mirroring the preference of Goldman for the cheaper stocks, strategists at Barclays Plc, including Matthew Joyce, on Monday found turning overweight on value stocks, stating that the higher for, the longer rates are not reflected yet in growth and value.



    RELATED ARTICLES

    US-Ukraine talks

    US-Ukraine Talks: Zelensky Seeks Meaningful Outcomes Amid War

    Ukrainian President Volodymyr Zelensky hopes the subsequent talks between Ukraine and the United States will...
    OTT platforms

    OTT Platforms: Reviving Local Languages, Culture, and Heritage in India

    OTT systems have revolutionized content material intake in India, presenting audiences with admission to numerous...
    mental health

    Mental Health Awareness In India: Breaking The Stigma In 2025

    One of the aspects of our overall well-being is mental health, and it should not...
    women safety in India

    Women Safety in India: Key policy changes and ongoing challenges

    For an extended period, Indian society has maintained women's safety as both domestic and international...
    New Education Policy 2024

    New Education Policy 2024: Learning is Being Transformed

    Education in India has long been dependent on traditional methodologies that emphasize rote learning and...
    what is one way that technology can improve the distribution of goods?

    What is one way that technology can improve the distribution of goods?

    Technology has transformed almost all sectors, and logistics is no exception. To answer the question,...
    Best Trading Apps to Open a Demat Account

    Best Trading Apps to Open a Demat Account: Features & Fees

    Investing in the stock market has become more accessible than ever with trading apps that...
    Tampa's Thriving Business Climate and Why It’s So Hot Right Now!

    Tampa’s Thriving Business Climate and Why It’s So Hot Right Now!

    Over the past decade, Tampa has undergone a quiet but powerful transformation. Once seen as...
    Minneapolis Property Management

    Minnesota Property Management Services

    If you’re in search of a reliable, efficient, and professional property management company in the...
    technology trends

    Technology Trends for 2025: The Next Frontier of Innovation

    The digital landscape is changing more swiftly than ever, reconstituting businesses, communities, and everyday life....
    ecommerce marketing tactics

    Ecommerce Marketing Tactics: How the Trend is Changing in 2025

    The 2025 E-commerce industry is even more vibrant, cutthroat, and focused on consumers than just...