“Goldman sees $500-B US household cash being invested in US stocks“– Paul Ebeling
US households and corporations will buy an additional $500-B of US stocks through the yearend, even as equities trade near record highs, according to Goldman Sachs Group in a note to clients Monday
This is set up to happen as there is a record $5.5-T of cash sitting on the sidelines, having grown through the VirusCasedemic, Goldman strategists led by David J. Kostin wrote in the note.
Mr. Kostin expect corporations to be the biggest source of equity demand for the rest of Y 2021, with buybacks set to accelerate and issuance poised to slow from peak Q-1 marks.
In Q-1, US households bought a net $172-B of equities, Goldman said, with demand set to be boosted further by high levels of cash and growing market participation by retail investors that has led to the volatility seen in the meme stocks this year.
National and international investor appetite for stocks shows no sign of abating, even as US and European stocks trade close to record highs and as Fed officials signals they will continue to gin the market through and beyond T 2023.
Billionaire investment guru Ray Dalio says Fed cannot tighten without having big, negative effect on markets.
Monday, the Summer rally began
DJIA +586.89 at 33876.97, NAS Comp +111.10 at 14141.48, S&P 500 +58.34 at 4224.79
The S&P 500 rose 1.4% Monday in a rally led by the value/cyclical stocks. The DJIA (+1.8%) and Russell 2000 (+2.2%) outpaced the benchmark index, while the NAS Comp (+0.8%) gained 0.8%.
Have a positive day, Keep the Faith!