tl;dr
In a recent note, David Kostin, a strategist from Goldman Sachs' equity team, applied Taylor Swift lyrics from her '1989' album to predict the best investment strategy for 2024. Kostin believes that portfolio managers should follow Swift's advice in her song "All You Had To Do Was Stay," attributing...
In a recent note, David Kostin, a strategist from Goldman Sachs' equity team, applied Taylor Swift lyrics from her '1989' album to predict the best investment strategy for 2024. Kostin believes that portfolio managers should follow Swift's advice in her song "All You Had To Do Was Stay," attributing the tour of her "Eras" as one of the most significant cultural events of 2023.
He forecasts a below-trend growth in the S&P 500 index, with the year ending at 4,700 and a 5% gain. However, the interim targets for the 3-month and 6-month period suggest a flat market during the first half of the year. Kostin attributes this to resilient economic growth earlier in the year before suggesting that the market will force it to pull back its current pricing and cut back on its risk appetite due to uncertainty over the US election. He says three things will limit equity appreciation next year: Goldman's forecast of 2024 GDP growth of 2.1%; substantial margin expansion is unlikely with diminishing profitability tailwinds; and the fact that the S&P 500 index is unlikely to expand meaningfully in 2024, trading in line with historical interest rates.
Kostin says that Goldman's team was right on profits but wrong on market gains for 2023. The team correctly predicted that the aggregate S&P 500 index would show no profit growth. They initially forecast $224 of EPS and now the market is on track to deliver earnings in line with that number. The equal-weighted S&P 500 index has also posted flat EPS. However, they were wrong because there was an aggregate index has posted a 19% total return, led by stellar returns of a select few mega-cap stocks.
More about Apple Inc
Apple Inc. is an American multinational technology company known for specializing in consumer electronics, computer software, and online services. The company reported a revenue of $274.5 billion in 2020, making it the world's largest technology company by revenue. Apple's stock performance has been strong, with a current stock price of $197.8, and a market sentiment of 0.135 indicating positive sentiment. As of 2021, Apple is the world's fourth-largest PC vendor by unit sales and the fourth-largest smartphone manufacturer, solidifying its position in the technology market.
More about Microsoft Corporation
Microsoft Corporation is a leading American multinational technology company with a diverse product lineup including computer software, consumer electronics, and personal computers. Its key financial metrics include a total revenue of $275.19 billion, a net income margin of 10.33%, and a market capitalization of $218.31 billion. The stock performance has seen a 2.79% increase in the last trading session, indicating positive market sentiment. As a leading player in the U.S. information technology industry, Microsoft's stock is highly valued and its revenue ranks it among the largest corporations in the world.
More about Alphabet Inc Class A
Alphabet Inc Class A is a multinational conglomerate based in Mountain View, California. As of its most recent financial data, it is the world's fourth-largest technology company by revenue, with a market capitalization of $1.682 trillion. The stock has a 52-week range of $151.62 - $297.13, with a current price-to-earnings ratio of 25.6 and a dividend yield of 0.46%. Its stock performance has been relatively steady, with a 0.11% change in the most recent period. Market sentiment towards Alphabet Inc. appears positive, given its strong financial metrics and consistent stock performance.
More about Amazon.com Inc
Amazon.com, Inc. is a major player in the U.S. information technology industry, known for its e-commerce, cloud computing, digital streaming, and artificial intelligence offerings. With a market capitalization of $1.506697282 trillion, the company's stock price of $3,297.37 and a P/E ratio of 76.34 indicate strong investor confidence. The stock has grown by 53.95% and boasts a significant trading volume of 554,027,975,000, further reflecting positive market sentiment. Amazon's brand value of $172.83 billion signifies its strong position in the retail industry. Overall, Amazon's financial data and stock performance indicate a company that is well-positioned within the market and continues to generate investor interest.
More about NVIDIA Corporation
NVIDIA Corporation is a leading player in the manufacturing and semiconductors & related devices industry with a market cap of over $1.19 trillion. The stock price is currently at $116.19 with a slight increase of 0.16, and a high P/E ratio of 594.21, reflecting investor confidence and future earnings potential. The company's market sentiment seems positive, with a strong upward trend in stock performance and a healthy PEG ratio of 1.015, indicating potential for future growth.
More about Meta Platforms Inc.
Meta Platforms Inc. is a technology company that develops products for connecting and sharing through various devices worldwide. As of the most recent financial data, the company has a market capitalization of $845.97 billion and a stock price of $370.06. The company's price-to-earnings ratio is 29.08, and it has a dividend yield of 1.679%. In terms of stock performance, Meta Platforms has seen a year-to-date growth of 11.32%. Market sentiment towards the company appears positive, with a current ratio of 0.234 indicating strong liquidity, and a net income of $48.97 billion.
More about Tesla Inc
Tesla Inc. is a prominent player in the electric vehicle and clean energy industry, having achieved the highest sales in the plug-in and battery electric car segments in 2020. The company's diverse product offerings include electric cars, battery energy storage, solar panels, and related services. Tesla Energy, a subsidiary of Tesla, is a major installer of solar energy systems and one of the top global suppliers of battery energy storage. In terms of financials, the company reported $754.7 billion in manufacturing revenues and $95.9 billion in net income. The stock performance showed a share price of $225.82 and a modest annual return of 3.11%. Tesla's market sentiment appears positive, with a 16% share of the plug-in market and 23% share of the battery-electric market.