The most reliable shares of 2019
According to Goldman Sachs Group Inc., in 2019 investors are waiting for a huge number of risks, ranging from trade negotiations between the US and China to European politics and a pause in the work of the US government. That is why the company’s specialists this year advise traders to choose stocks with an existing history. Although they predicted that in the next six months, the market expects a rise in the shares of American organizations. In a report for the fourth of January, analysts at Goldman Sachs said that in 2019 they expect the United States economy to grow by almost 2%. Their predictions are based on the current position of the American market. According to them, due to the current low rates there is a very high probability that stocks will grow. Still, experts warned investors against carelessness, because low cash allocations, as well as the instability of the trading environment, still pose a danger to the equity portfolio. According to the advice of strategists, traders should turn on the phenomenon of the market, as increased uncertainty. After all, it supports the ownership of stocks with strong growth and limited dependence on the path of economic activity. The team prefers the information technology and communications services sectors, citing a low historical level of correlation with economic growth. It is worth mentioning that the last months of the campaign were undermined by the events in the trade war between the US and China, the slowdown of the global economy and the prospects for further tightening of the Federal Reserve System, along with hot spots of political unpredictability from Italy to Great Britain and the United States. The S & P 500 index has fallen by more than 1% over the past 13 weeks as investors tried to determine the direction of the market. According to experts, traders should have organizations in their portfolio characterized by “quality” attributes. ” In their councils, they once again emphasized the importance of high protection of the investment portfolio. In addition, they promised to identify stocks with good positions that should not let the sponsor in an uncertain economic situation.
How were selected the most reliable shares?
The report states that the experts used the strategy of evaluation analysis to calculate organizations characterized by a certain margin of safety. Thus, in the result, the team presented positions that are still traded at a premium of 10 percent.
Among the US stocks, which included the Goldman Sachs team in a reliable list: FedEx Corp., KLA-Tencor Corp., United Parcel Service Inc., Walgreens Boots Alliance Inc., International Business Machines Corp., Essex Property Trust Inc., AmerisourceBergen Corp. , Tyson Foods Inc., CH Robinson Worldwide Inc. and Altria Group Inc.
According to the company’s experts, their goal at the end of the year is 3000 points for the S & P 500, which represents a 14% profit, the strongest in the regions. However, they also noted that the environment of slow and slow growth means a possible small buffer for additional negative shares.
