Tags: Goldman | US | Stocks | america

Goldman Sachs: Now Is Time to Buy US Stocks, Don't Fret About Europe

Thursday, 12 Jan 2012 08:12 AM

Share:
  Comment  |
   Contact Us  |
  Print  
|  A   A  
  Copy Shortlink
The time to buy American is now, Goldman Sachs analysts conclude, at least where stocks are concerned.

Economic indicators are improving in the US, and Europe is becoming a more distant threat.

"Cyclical areas of the U.S. economy improved in late 2011 from low activity levels and we expect that trend to continue in 2012 as auto sales improve and housing activity bottoms," Goldman Sachs equity strategist David Kostin says in a note to clients, according to CNBC.

"Select companies exposed to those areas of the economy have attractive risk-reward if activity normalizes, even without a strong recovery."

Those select companies include Ford, Ingersoll-Rand, CSX, Lowe’s and Toll Brothers, according to Goldman Sachs.

Other experts agree that when it comes to investing, few can do better than the red, white and blue.

"The U.S. economy, though sluggish in recovery relative to past expansions, is superior to most of the world's economies (with the exception of some emerging markets) in terms of diversity of end markets, quality of global franchises, management expertise, operating execution and financial foundations," Doug Kass, of the Seabreeze Partners Management hedge fund, writes in a note, CNBC adds.

"Conditions have evolved over the near and intermediate term that have conspired to favor risk assets in the U.S. over many other areas of the world."

Others have grown extremely bullish on the U.S. economy, including economist Brian Wesbury of First Trust.

Ignore anyone bearish for 2012.

"I'm looking for about 3 percent growth in GDP and it could even be stronger than that and 20 percent growth in stock prices mainly because the economy is going to be stronger than people think," Wesbury tells Yahoo's The Daily Ticker.

"And number two, earnings: they're at an all-time record high and they are going to grow again in 2012."

"I think it's going to be a gangbuster year for the markets and the economy."

© 2014 Moneynews. All rights reserved.

Share:
  Comment  |
   Contact Us  |
  Print  
  Copy Shortlink
Around the Web
Join the Newsmax Community
Please review Community Guidelines before posting a comment.
>> Register to share your comments with the community.
>> Login if you are already a member.
blog comments powered by Disqus
 
Email:
Country
Zip Code:
Privacy: We never share your email.
 
Hot Topics
Follow Newsmax
Like us
on Facebook
Follow us
on Twitter
Add us
on Google Plus
Around the Web
Top Stories
You May Also Like

Michael Moore Out as Michigan Film Board Member

Sunday, 21 Sep 2014 22:27 PM

Oscar-winning documentary filmmaker Michael Moore no longer will serve on the Michigan Film Office Advisory Council. Rep . . .

Rush Limbaugh's Call Screener: Liberalism 'Horrific' to Black Communities

Sunday, 21 Sep 2014 22:23 PM

Calling liberalism's effect on black communities "horrific," the longtime call screener for Rush Limbaugh says that for  . . .

5 Things Catholics Need to Start Saying in the Same-Sex Marriage Debate

Sunday, 21 Sep 2014 21:58 PM

To offer advice about the same-sex marriage debate may already be an unduly optimistic assessment of the circumstances.  . . .

Most Commented

Newsmax, Moneynews, and Independent. American. are registered trademarks of Newsmax Media, Inc. Newsmax TV, NewsmaxWorld, NewsmaxHealth, are trademarks of Newsmax Media, Inc.

 
NEWSMAX.COM
America's News Page
©  Newsmax Media, Inc.
All Rights Reserved