Big hedge fund managers my be taking risk off the table, but Goldman Sachs remains bullish on the broader market and notes the recent pullback is totally consistent with a recovery. Goldman believes the S&P 500 will hit 1,300 by mi-year before pulling back to about 1,250 at the end of the year.
From the firm’s latest Kickstart report:
“Developments over the past two weeks have not altered our fundamental view. The market has plunged 12% in four weeks, but remains 60% higher than in March 2009. The pull-back has been consistent with sell-offs that occurred in recoveries following bottoms in 1974, 1982, 1987, 1990 and 2002. The correction has been orderly in that sector returns have been exactly in-line with beta-adjusted expected performance.”
“We expect the S&P 500 to rise to 1300 by mid-year (+21%), before ending 2010 at 1250 (+17%).”
“We recognize the dramatic decline in the Euro, and the potential impact it may have on reported US corporate earnings if it persists through year-end. We acknowledge the risk that European economic growth may be weaker than many currently expect as a result of pending fiscal tightening. However, we remind equity investors that US companies in the S&P 500 have total annual revenues of $8.4 trillion and Europe, Middle East and Africa combined explicitly account for just 10% of the total (and if charitably inclined, perhaps as much as 15% of the total if a generous allocation of sales to “Other” regions is allocated to Europe).”
Goldman is also out with its latest Hedge Fund Trend Monitor report, which tracks 629 hedge funds with $701 billion in long equity assets and $400 billion of short equity positions. The performance of hedge fund positions during the recent pullback has only solidified the firm’s position on the market.
10,350
Sorry to change the subject here — Pls check BBRG news story 884 – Lindsay Lohan —- “Milka What?” -
Kouwe, I’m gunna make you eat your own giblets.
ZK: Hey Bess, I know you’re always writing snarky, absurdist gossip posts that everyone loves about crab claws and strippers, but I have an idea too…
BL: What is it, Zachy-boy?
ZK: Well, hang with me a sec because this is some concept-heavy, original shit. This is like, y’know, Genesis up in this mo’fucker. This is pure fuckin’ alpha. You ready?
BL: Hit me.
ZK: You ready!?
BL: Yes.
ZK: YOU READY?!
BL: Zach…
ZK: We’ll start a game.
BL: …a game.
ZK: Yeah, a game! BUT NOT ANY ORDINARY GAME – naw, this one will be in the comments section.
BL: Uh…huh.
ZK: Now, this is hella original, okay, so don’t tell anyone – especially not anyone at the NYT. They might try to rip us off. They’re a bunch of shameful plagiarists.
*Kouwe nods knowingly*
Get this – we’ll make people CALL where the market will CLOSE. We’ll call it “Pick the Ending”.
BL: Gee Zach, that sounds familiar…
ZK: *petulantly* No no no no no! It’s totally my idea. See, I even have it written down in my wordpad document! And I don’t see any source mentioned, do you?
BL: What else you got?
ZK: Well, I’m planning on rewriting day-old stories that everyone’s already seen elswhere, but without humour and in a really stilted way.
BL: *earnestly* Trust me Zach, maybe you want to go in a different direction. The readers here are smart. They expect a little bit of excitement, man.
ZK: *smugly* Oh, don’t you worry – I won’t let you down. I’m gonna pepper my writing with 4th grade-level errors of expression, punctuation and spelling to really make the words sizzle! If I were you Bess, I’d watch out. Give me a month, and they’ll be calling me the King of the Street!
O HAI,
GOLDMAN SACKZ IZ LIKE KAT. CAT LOOKZ DOWN AT YOU. GOLDMAN SACKZ LOOKZ DOWN AT YOU. I BLOGZ ABOUT IT HERE: http://bit.ly/9niuMT
K THX BAI,
MANNIE
P.S. IM KAT BAI TEH WAI
@4 FTW!!!
proofreading adds value.
GS believes S&P will hit 1300 by mid-2011? So that means it will probably be somewhere far from that number right?
This is Goldman, of course.
Sellside reports are not news. It’s all just a bunch of kouwe. Kouwe that comes out of goldmans ass is still kouwe, even if it’s got some gold leaf in it
@4 pure awesome