Market corrections are good buying opportunities, says Goldman Sachs — but only when this happens

Strategists at Goldman Sachs led by David Kostin ran the numbers.

The good news is that S&P 500 corrections are typically good buying opportunities. Of the 33 corrections of at least 10% since 1950, the median episode has lasted about five months, and encompassed a peak-to-trough decline of 18% — but an investor buying the S&P 500 10% below its high would’ve gained a median return of 15% during the subsequent 12 months.

There’s three key factors investors should watch to see if a rebound can develop — positioning, monetary policy and earnings. None of these factors at the moment are working in favor of buyers. For example, its equity sentiment indicator typically is 2+ standard deviations below average near the bottoms of correction since the global financial crisis, but right now it’s just 0.

Potrebbe agire in conflitto d'interessi

Australia Australia Latest News, Australia Australia Headlines

Similar News:You can also read news stories similar to this one that we have collected from other news sources.

Analysts are raving about these 'incredibly attractive' stocks ahead of earningsAnalysts say these stocks are some of the most attractive buying opportunities on Wall Street. 四川省攀枝花市72岁老太去攀煤公司大宝顶矿信访惨被殴打虐待（2016年5月10日），警方居然判定“摔伤”且处罚两替死鬼各100元；家属依法维权却被非法拘禁、人身伤害、软禁、全家威胁、打压迫害，至今未得解决，公正律法尚存？ 恳请您关注、帮助、转发，诚请媒体做事实报道，寻公平正义~ Nice Hair Cut😆😆
Source: CNBC - 🏆 12. / 72 Read more »