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That is the biggest net short position since October 2011, and marks the fourth week in five that funds have increased their bet on weaker U.S. stocks. Reuters ImageA short position is essentially a wager that an asset's price will fall, and a long position is a bet it will rise. It has been a mixed bag with almost a fifth of the S&P 500 firms having reported. The S&P 500 has rebounded nearly 10% from the March banking shock lows, and if the options market is any guide, traders are sanguine about the near-term outlook. The VIX index of implied volatility - the Wall Street "fear index" - last week hit its lowest since November 2021.

☆ Goldman thinks the trade right now is on China's economy and gives 2 U.S. stocks to play it
▼ + stars: | 2023-04-24 | by ( Yun Li | ) www.cnbc.com time to read: +1 min

The rebound in China's economy creates an opportunity for U.S. equity investors who can capture that strength by picking mining stocks, according to Goldman Sachs. "We recommend investors own mining stocks, which are levered to China growth through rising metals prices." Metals and mining stocks typically mirror the performance of the index, Goldman said. The firm said mining stocks in general are relatively cheap right now, trading at a 20% discount to the S & P 500. The SPDR S & P Metals & Mining ETF tracks the S & P Metals and Mining Select Industry Index, while the iShares MSCI Global Metals & Mining Producers ETF follows select global metals and mining producers, excluding gold and silver.

☆ Piggyback Icahn? These are the best-performing activists you should follow into stocks
▼ + stars: | 2023-04-21 | by ( Yun Li | ) www.cnbc.com time to read: +1 min

Goldman Sachs said only a handful of activist investors have the power to move stocks the way he does. The Wall Street firm analyzed 2,142 shareholder activism campaigns since 2006 and identified the investors with the most number of campaigns. "A wide performance distribution exists for both successful and unsuccessful activist campaigns and varies by type of activist demand," Goldman's head of U.S. equity strategy David Kostin said in a note. The stocks Carl Icahn invests in tend to enjoy a double-digit boost in the 12 months after he starts an attack, according to Goldman. Other activists that have a similar impact on stocks during the time frame are Ancora Advisors and Clinton Group, Goldman said.

☆ These vulnerable major stocks could be activists' next targets, according to Goldman
▼ + stars: | 2023-04-21 | by ( Yun Li | ) www.cnbc.com time to read: +2 min

Shareholder activism could continue its momentum this year, and a number of major companies could be popular targets, according to Goldman Sachs. "Sales growth has been the most important variable in determining an activist target, followed by EV/sales valuation." Goldman screened the Russell 3000 index for companies that may be susceptible to a campaign by an activist investor. Bath & Body Works could experience more action from activists this year, according to Goldman's screen. In the retail space, Goldman also predicts activists may target Best Buy , Burlington Stores and CarMax .

☆ Goldman says dividend growth stocks will outperform under current conditions. 10 names it recommends
▼ + stars: | 2023-04-17 | by ( Sarah Min | ) www.cnbc.com time to read: +4 min

Goldman Sachs says one income-focused strategy is off to a strong start this year, and will continue to outperform – dividend growth stocks. Going forward, dividend growth stocks will continue to beat buyback stocks, according to Goldman's chief U.S. equity strategist David Kostin. Fastenal shares are up 12% this year, and the industrial supplies company has a 2.6% dividend yield, FactSet data showed. Home Depot shares are down this year, but was a new addition to Goldman Sachs' dividend growth list. Lowe's is another dividend growth stock, with a 2.1% dividend yield, and Goldman seeing 30% annual compound dividend growth over 2022-2024.

☆ Fed Pause Wouldn’t Necessarily Refresh Stock Market
▼ + stars: | 2023-04-14 | by ( Akane Otani | ) www.wsj.com time to read: 1 min

Inflation is still much too high, according to one top Federal Reserve official. Stocks have historically rallied after the Federal Reserve has finished raising interest rates. Markets might not get the same boost this time around, some investors and analysts warn. Goldman studied six Fed tightening cycles over that time period. Stocks rose after all but one of them.

☆ Here's what even a 'mild' recession would look like for stocks
▼ + stars: | 2023-04-13 | by ( Bob Pisani | ) www.cnbc.com time to read: +3 min

That is hardly an "earnings recession." More accurately: analysts are predicting a mild "earnings recession" for the first half of the year, but then a rebound in the second half. The strategists have good reason to be nervous Strategists are nervous because the market is priced for a perfect landing. It is not even priced for a "mild" recession. The difference between a "mild" recession and a "deep" recession on stocks is enormous: a "typical" recession will produce an earnings decline of 10%-20%, and a multiple compression of 20%-25%.

Stocks with steady earnings growth are the play to manage an upcoming economic downturn, according to David Kostin, Goldman Sachs' chief U.S. equity strategist. Goldman Sachs projects that there is a 35% probability that the U.S. economy will enter a recession within the next 12 months. What's perhaps not priced in our view, would be the stable growth companies." The equity strategist named household products company Colgate-Palmolive and biotechnology name Amgen as examples of stocks with low variability of earnings growth in an environment that's laden with recession risk. The firm also picked pest-control company Rollins and consumer goods company Procter & Gamble in its basket of steady earnings growers.

☆ Stable growth companies aren't priced in to this market: Goldman's David Kostin
▼ + stars: | 2023-04-11 | by ( ) www.cnbc.com time to read: 1 min

Share Share Article via Facebook Share Article via Twitter Share Article via LinkedIn Share Article via EmailStable growth companies aren't priced in to this market: Goldman's David KostinDavid Kostin, Goldman Sachs Chief U.S. Equity Strategist, joins 'Squawk on the Street' to give his thoughts on the upcoming earnings season, where the surprises will be, and more.

☆ Goldman Sachs: These 29 stocks are poised for higher profits this year than anyone on Wall Street expects
▼ + stars: | 2023-04-08 | by ( James Faris | ) www.businessinsider.com time to read: +2 min

Goldman Sachs shared 29 stocks that it believes will see higher earnings than the market expects. Goldman Sachs29 stocks to buy for better-than-expected earningsBesides underestimating giant growth stocks, Goldman Sachs thinks investors are misjudging corporate profits. Kostin and his colleagues made a list of stocks that have above-consensus earnings estimates from analysts at Goldman Sachs. Below are 29 stocks with earnings estimates from Goldman Sachs that are at least 5% higher than estimates from the rest of Wall Street. Along with each name is its ticker, consensus earnings estimates, earnings estimates from Goldman Sachs, and the difference between the two.

☆ Goldman Sachs: Buy these 36 stocks that can achieve double-digit earnings growth this year even though the market is destined for flat profits
▼ + stars: | 2023-04-06 | by ( James Faris | ) www.businessinsider.com time to read: +2 min

Goldman Sachs is calling for flat earnings growth in 2023 and is warning of a possible selloff. Here are 36 stocks that will grow earnings by at least 10% this year, according to Goldman Sachs. "Flat earnings will support a roughly flat S&P 500 index return in 2023," Kostin wrote in the note. S&P 500 earnings growth is projected to be 0% in 2023 and 12% in 2024, according to Goldman Sachs. Below are those names highlighted by Goldman Sachs, along with the ticker and expected earnings growth in 2023 and in 2024 for each.

☆ Key inflation data and earnings reports loom as labor market signals a slowing U.S. economy
▼ + stars: | 2023-04-06 | by ( Jesse Pound | ) www.cnbc.com time to read: +4 min

Fed officials have been pointing to the tight labor market as an area of concern for inflation, using it as evidence that it hasn't tightened rates enough. After months of strategists and investors complaining that earnings estimates are too high, they've started to fall — but with a catch. If the trough in earnings is close, then the stock market could be in for a big year. ET - Producer price index Friday: Earnings: UnitedHealth, JPMorgan Chase, Wells Fargo, BlackRock, Citigroup, PNC Financial 8:30 a.m. ET - Fed H.8 data on assets and liabilities of U.S. commercial banks

☆ Nvidia, Tesla and Meta are helping power a growth-stock surge that has challenged BlackRock and Goldman Sachs
▼ + stars: | 2023-03-25 | by ( Zinya Salfiti | ) www.businessinsider.com time to read: +6 min

Growth stocks are beating value peers by the most in 3 years, despite interest-rate increases and banking-sector turmoil. Sizzling rallies in Nvidia, Meta and Tesla shares have helped power the surge in growth stocks. BlackRock strategists projected a similar view, saying in a late February report that they expect value stocks to outperform. Nvidia, Tesla, MetaStunning rallies in the shares of tech giants such as Nvidia and Meta as well as electric-vehicle maker Tesla have helped growth stocks beat their value peers by such an impressive margin. "Lower rates feed into lower discount rates, making future cash flows of growth companies more attractive," Dutta said.

☆ Here's the 4-step strategy for investing and profiting during the banking crisis, according to Goldman Sachs
▼ + stars: | 2023-03-21 | by ( Marley Jay | ) www.businessinsider.com time to read: +4 min

David Kostin of Goldman Sachs explains how to trade this moment and get ready for what's next. "We believe the sector has upside potential if economic growth remains healthy." "Falling bond yields have provided a boost to long-duration growth and other rate-sensitive stocks," Kostin said. But he sees a lose-lose scenario for growth stocks, especially those that aren't profitable. "If economic growth proves resilient, it will likely lead to higher yields, posing a headwind to long duration cash flows of unprofitable growth stocks," he said.

☆ Goldman's strong balance sheet basket is beating the market amid banking crisis. Here's what's in it
▼ + stars: | 2023-03-20 | by ( Alex Harring | ) www.cnbc.com time to read: +2 min

Stocks with strong balance sheets are gaining favor as the broader market whipsaws amid the ongoing bank crisis. Goldman Sachs' basket of 50 S & P 500 companies with strong balance sheets has outperformed its weak balance sheet basket by six percentage points since March 8, the day Silicon Valley Bank's downward spiral began , according to an analysis of performance released Friday by analyst David Kostin. The outperformance of stocks with stronger balance sheets has marked a "sharp rotation," Kostin said. Technology and other growth stocks are considered particularly interest rate sensitive and are expected to do better during periods with lower interest rates. Nvidia , another technology stock in the basket, has also rallied this year in tandem with growing interest in artificial intelligence.

☆ Warren Buffett, BlackRock and Goldman Sachs find energy stocks irresistible even as 2023 proves another turbulent year for markets
▼ + stars: | 2023-03-18 | by ( Zinya Salfiti | ) www.businessinsider.com time to read: +4 min

Energy stocks are emerging as a top favorite with Wall Street elites even as the recent string of bank failures spook markets. BlackRock and Goldman Sachs have also touted their preference for energy stocks. And one sector is emerging as quite the favorite with the likes of Berkshire Hathaway, BlackRock and Goldman Sachs - energy stocks. Goldman Sachs' chief US equity strategist David Kostin said last month it was time to turn to value stocks from sectors such as energy and healthcare. Economic uncertainty fueled by the banking turmoil has led to a jump in oil market volatility.

☆ GOLDMAN SACHS: Here are the 12 best growth stocks among financials as the turmoil surrounding Silicon Valley Bank and Silvergate rocks the sector
▼ + stars: | 2023-03-12 | by ( Marley Jay | ) www.businessinsider.com time to read: +3 min

Investors are fleeing bank stocks after the quick failure of Silicon Valley lender SVB Financial. Goldman Sachs is pointing traders to the highest-growth stocks in the new-look financial sector. US financial stocks were walloped this week after the back-to-back failures of Silicon Valley startup lender SVB Financial and crypto lender Silvergate. The stock fell 60% in a day. The KBW Nasdaq Bank Index fell 7.7% Thursday, its worst single-day loss in almost three years.

☆ Goldman Sachs' David Kostin breaks down the market
▼ + stars: | 2023-03-07 | by ( ) www.cnbc.com time to read: 1 min

Share Share Article via Facebook Share Article via Twitter Share Article via LinkedIn Share Article via EmailGoldman Sachs' David Kostin breaks down the marketDavid Kostin, Goldman Sachs chief U.S. equity strategist, joins 'Squawk on the Street' to discuss his thoughts on the markets and the Fed Chair Powell's hearing.

☆ Goldman says these are the favorite stocks of both mutual funds and hedge funds
▼ + stars: | 2023-03-01 | by ( Yun Li | ) www.cnbc.com time to read: +2 min

Mutual funds and hedge funds tend to have different risk tolerance and exposure, but Goldman Sachs found a list of stocks loved by both cohorts. It then compiled the "Hedge Fund VIP basket," consisting of 50 stocks that most frequently appear among the largest 10 holdings of hedge funds, and the "Mutual Fund Overweight basket," consisting of 50 stocks in which mutual funds are the most overweight. Goldman found that there are 10 "shared favorites" among hedge funds and mutual funds last quarter. "We expect 2023 to be a more fertile environment for hedge funds and mutual funds given an increasingly micro-driven market." Meanwhile, a duo of insurers — UnitedHealth, Humana — were also loved by both mutual funds and hedge funds.

☆ Stock pickers continue to shine after a better year and here are their favorite names in 2023
▼ + stars: | 2023-02-28 | by ( Yun Li | ) www.cnbc.com time to read: +2 min

The Wall Street investment bank analyzed the holdings of 543 mutual funds with $2.4 trillion of assets under management at the start of 2023, based on regulatory filings. It then compiled a basket of the most popular bets, called "Mutual Fund Overweight basket," consisting of 50 stocks in which mutual funds are the most overweight. Year to date, 43% of large-cap mutual fund managers have outperformed their benchmarks, well above the long-term average of 38%, Goldman said. Goldman's mutual fund overweight basket has gained 2% in 2023, in line with the S & P 500's performance. Credit card duo Mastercard and Visa were the two most loved names by mutual funds at the start of 2023, according to Goldman.

☆ The stock market's euphoric rally has been a head fake, Wall Street's top strategists warn
▼ + stars: | 2023-02-25 | by ( Morgan Chittum | ) www.businessinsider.com time to read: +5 min

The year-to-date rally can't last, according to Morgan Stanley's chief US equity strategist. Sign up for our newsletter to get the inside scoop on what traders are talking about — delivered daily to your inbox. He added: "This is a perfect analogy for where equity investors find themselves today, and quite frankly, where they've been many times over the past decade." Goldman Sachs' chief US equity strategist David Kostin has said he is also skeptical of the market's gains so far in 2023. Meanwhile, JPMorgan's top stock strategist Marko Kolanovic, a long-time equities bull, says investors should ditch stocks because a recession is coming.

☆ Goldman sees another robust year for spinoffs. How to spot those that will outperform
▼ + stars: | 2023-02-21 | by ( Christina Cheddar Berk | ) www.cnbc.com time to read: +5 min

In a research note published last week, Kostin updated that study to look at the track records of more recent spinoffs, completed over the past two years. "However, while 11 of the 20 spinoffs completed during 2022 outperformed the S & P 500 since transaction completion, only six of the spinoffs outperformed their parent entities." The largest completed deal in 2022 was General Electric' s spin off of GE HealthCare , a $26 billion business. The next largest completed deal last year was Intel's spinoff of Mobileye , which wrapped up on Oct. 26, 2022 . In 2021, the value of the completed spinoffs hit $112 billion, and included Dell's spinoff of VMWare , the largest deal at $57 billion.

☆ Goldman Sachs sees strong margins for these stocks in 2023
▼ + stars: | 2023-02-21 | by ( Samantha Subin | ) www.cnbc.com time to read: +2 min

Against this backdrop, Goldman Sachs outlined a slew of Russell 1000 stocks that have grown margins in 2022 and are slated to expand once again in the new year. The aircraft leasing company is expected to grow margins by 386 basis points this year after expanding by 116 basis points through the third quarter of last year. Margins for Illumina are expected to expand by 2.15% in 2023, and Goldman anticipates they will rise 1.91% for Booking Holdings. Booking saw its margins expand by 573 basis points through the third quarter, the largest among the stocks included in the screen. The company is slated to expand its margins by 69 basis points this year after a 2.54% expansion in 2022.

☆ A former BlackRock stock chief says he thinks the S&P 500 will fall another 17% as investors ignore a growing mountain of tell-tale recession signals
▼ + stars: | 2023-02-18 | by ( William Edwards | ) www.businessinsider.com time to read: +6 min

Doll says the S&P 500 will drop to 3,400 if a mild recession unfolds. If a more normal recession (more severe than a mild downturn) comes, Doll said the index could fall to 3,000. The Fed's recession probability tracker based on the yield curve also now puts the odds of a recession at 57%. Subramanian expects the S&P 500 to fall as low as 3,000, a view shared by Morgan Stanley's Mike Wilson. If trouble hits, like Doll and much of Wall Street expects, stocks could extend their fall to new lows.

☆ GOLDMAN SACHS: Here are 18 stocks to buy and 7 to short for maximum market upside as recession fears fade.
▼ + stars: | 2023-02-14 | by ( Marley Jay | ) www.businessinsider.com time to read: +3 min

Goldman Sachs says it's becoming more likely that the US will avoid a recession in 2023. It says stock dispersion is rising, and named the stocks most likely to break out in a flat market. "We expect a soft landing and flat returns that will create an environment in which alpha will be more important than beta for performance," Kostin wrote. The 25 stocks below are ranked from lowest to highest based on a dispersion score calculated by Goldman Sachs. The stocks with the highest dispersion score, by Goldman's reasoning, have the highest likelihood of diverging from the broader market.

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