The Goldman Sachs Group, Inc., a leading global financial institution, released its 2024 US equity market forecasts. This report shows that the US economy sidestepped 2023 recession predictions and landed on its feet.
Goldman Sachs 2024 US equity outlook hits the wires
Surprisingly, gross domestic product growth (GDP) has been much stronger than expected. This did not, however, prevent labour market rebalances or a continued drop in inflation. Research experts at Goldman Sachs predict a 2.1% year-on-year GDP growth in 2024.
Additionally, the company’s economists foresee a 2% consumption growth and a real disposable income increase of approximately 3%. They also expect the Federal Open Market Committee to affect its first rate cut in Q4 of 2024 once inflation drops below the 2.5% mark.
Interestingly, this report indicates that only seven stocks dominate the biggest slice of the S&P 500 market cap. Dubbed the magnificent seven by analysts, these are the big tech companies, namely Apple (AAPL), Alphabet (GOOGL), Microsoft (MSFT), Amazon (AMZN), Meta (META), Tesla (TSLA), and Nvidia (NVDA).
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The Goldman Sach research further shows that these mentioned stocks gained 71% while others added a meagre 6% to the index. The S&P 500 added roughly 19% to market cap distribution so far this year.
With chief US equity strategist David Kostin at the helm, the Goldman Sachs research team said the performance of the so-called magnificent seven stocks defined the 2023 equity market. Analysis shows how these outperformed the other listed stocks. Between 2013 and 2019, the magnificent seven stocks grew at a compound annual rate of 15%.
