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Search resuls for: "Dominic Wilson"


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Declining inflation rates and consistent growth should create a solid background for stocks and other risky assets, even though some bouts of volatility are likely, according to Goldman Sachs. Broadly speaking, a "soft landing [is] on track," the firm said in a client note in which Goldman market experts said they expect the Federal Reserve soon to make a nod toward an easing in monetary policy that also will be market-positive. "The broad data still points firmly in the direction of easing inflation pressure and resilient growth, especially in the US," wrote Dominic Wilson, senior advisor in Goldman's Global Markets Research Group. But we still think it makes sense to fade those pullbacks and expect US equities and credit to make new highs, as they have been." "This week's FOMC meeting will need to remove the tightening bias to keep March alive, as the [Bank of Canada] did last week, but is unlikely to preview a March cut," Wilson wrote.
Persons: Goldman Sachs, Goldman, Dominic Wilson, Wilson, Michael Bloom Organizations: Federal Reserve, Markets Research, Gross, Bank of, CME Locations: Bank of Canada
But while external forces seem to be threatening markets, Dominic Wilson, senior advisor in Goldman Sachs' global markets research group, thinks investors themselves will turn recession fears into a self-fulfilling prophecy. In a note to clients late last week, Wilson wrote that the strength of the US economy has pushed markets upwards for most of the year. Investor sentiment has driven markets all year — particularly the exuberance over the potential of AI, which sent shares of a few key tech stocks higher and dragged the rest of the S&P 500 along with them. But Wilson thinks these issues are simply a "pothole" that the market will eventually recover from. If that's the case and stocks do bounce back in 2024, smart investors should position themselves now for profits later.
Persons: Dominic Wilson, Goldman Sachs, Wilson, Americas Equity Research Steven Kron, Kron, Morgan Stanley, there's Organizations: Federal Reserve, Americas Equity Research, Wall
Despite the banking crisis, the S & P 500 is actually higher than it was the day before Silicon Valley Bank's troubles dragged the banking sector down. Crisis causes Fed to 'grip the wheel' The bank crisis is also seemingly affecting the Federal Reserve 's policy of raising interest rates, experts said. Yet on Wednesday, the Fed announced a 25 percentage point increase , while expressing caution about the banking crisis. "The banking crisis basically caused the Fed to grip the wheel with two hands and take a more cautious approach to its rate tightening policy," Stovall said. "Other areas of the economy, including larger companies who may maintain access to bank credit and public markets (and perhaps consumer relative to commercial borrowers) might then escape with less negative impacts," he said.
John Hussman says stocks would have to fall more than 50% further to hit valuation norms. Stocks have staged an impressive rally in recent weeks, with the S&P 500 up 9% since October 12. For Hussman, valuations are still too high, even though the benchmark index has fallen as much as 25% this year. Still, valuations are nowhere near levels that we associate with satisfactory long-term market returns, so I suspect that more shoes will drop." The earnings disappointments Hussman sees will be caused by restrictive monetary policy from the Federal Reserve that weigh on demand.
The S&P 500 is down 19% in 2022. Since January 3, the S&P 500 is down more than 19%. All except for Apple have underperformed the S&P 500, though they are more on par with the performance of the tech-heavy Nasdaq 100, which is down 28.1% this year. It currently sits at 27.54, and tends to rise when the S&P 500 falls. Markets InsiderWhen all is said and done, Bierman said he thinks the S&P 500 will bottom out somewhere between 3,000-3,300.
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