Goldman Sachs Exchanges Why global equities are poised for “fat and flat” returns
8 snips
Jul 3, 2023 AI Snips
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Varied Equity Performance
- US equity market performance year-to-date is varied, with the Dow Jones flat, S&P 500 up 13%, and NASDAQ up 28%.
- Other markets like Europe and Japan have also seen gains, but performance depends on the specific index and currency.
Equity Return Drivers
- The main drivers of equity returns are shifting from interest rate movements to growth expectations.
- As central banks approach the end of their hiking cycles, the focus turns to avoiding recession and economic recovery.
Narrow Market Leadership
- The US equity market rally has been narrow, with 85% of the return coming from the top 15 companies.
- This narrow leadership is not unprecedented and could broaden out to other parts of the market.