The grim milestones of 10 million global coronavirus cases and more than 500,000 deaths, along with spikes in a number of U.S. states, haven't deterred investors on Monday.
In our call of the day, Goldman Sachs strategists said high volatility and low risk-adjusted returns were likely to linger in the coming months. After last week’s 2.9% dip, they expected the S&P 500 SPX, +0.78% to end the year at 3,000 points — 0.3% lower than its closing price on Friday. Goldman’s high Sharpe ratio basket has underperformed the S&P 500 year-to-date by 591 basis points, which the team put down to its tilt toward value stocks. Historically, the basket has outperformed the S&P 500 in 66% of semiannual periods since 1999 by an average of 271 basis points. The basket outperformed the index in May and early June, as economic data improved and value stocks rallied, they said, but has lagged behind since as fears of a second wave have mounted.
31 Lmao 😂