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Goldman Sachs Strategists Expect U.S. GDP Growth to Remain Above Trend
From:
Greg Womack -- Oklahoma Financial Advisor Greg Womack -- Oklahoma Financial Advisor
For Immediate Release:
Dateline: Oklahoma City, OK
Monday, April 26, 2021

 

Strategists at investment bank behemoth Goldman Sachsrecently noted that their economists expect U.S. GDP growth to remain above trendthrough the next few quarters; however, they caution that this will notnecessarily translate to equally outsize gains in the stock market.  

Inthe chart below, stock market gains for the following 3, 6 and 12 month periodsare grouped by Institute for Supply Management (ISM) index values at the startof the periods.  What it shows clearly is that the best stock market gainscome from good-but-not-spectacular ISM values, while the red-hot “greater than60” ISM values are typically followed by low or even negative stock marketreturns.  The current ISM value is 65 – squarely in that red-hot category.


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Womack Investment Advisers, Inc.

 

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