Don't miss it! Goldman Sachs expects U.S. stocks to start a year-end rebound this week
Goldman Sachs trader Scott Rubner expects that U.S. stocks will begin their year-end rally this week, pushing the S&P 500 index up about 4% to 6,200 points. With retail investors' enthusiasm for stocks and cryptocurrencies accelerating and corporate buyback demand increasing, the market is entering its best seasonal trading pattern. Rubner noted that since the presidential election on November 5, the S&P 500 index has risen by 3.2%, and the Russell 2000 index has risen by 6.5%. Historical data shows that the upward trend typically continues into January
According to the Zhitong Finance APP, Scott Rubner, a trader at Goldman Sachs, stated that the year-end rebound will begin this week, driving the S&P 500 index up about 4% to 6,200 points.
As the stock market enters its best seasonal trading pattern, retail enthusiasm for stocks and cryptocurrencies is accelerating. In a report to clients last Friday, Rubner noted that corporate demand for buybacks is also increasing, which is one of the reasons for the potential rise in the coming days.
He wrote, "I don't think there will be many people shorting the S&P index (at year-end)."
He added that the consolidation phase observed last week is typical. The U.S. stock market has seen the largest three-month inflow of funds since 2021, and November may record the largest monthly inflow ever.
Since the presidential election on November 5, the S&P 500 index has risen 3.2%, while the Russell 2000 index has increased by 6.5%. Rubner indicated that in election years, the upward trend typically continues until January, only to fade shortly before the inauguration day.
"Historically, good years for the U.S. stock market often follow one another, and January is when capital is deployed from the largest asset base," he stated