Wednesday, May 18

Goldman Sachs and Citi: It’s time to buy stocks

Falls in values ​​are always a good time to evaluate possible entries. From Goldman Sachs Gr Y Citigroup point out that this is the time to buy shares, according to Joanna Ossinger y Farah Elbahrawy en Yahoo Finance.

“Any further significant weakness in the index level should be viewed as a buying opportunity, in our opinion,” the analysts wrote. Goldman strategists, including Peter Oppenheimer. Meanwhile, the Citi strategists, including Robert BucklandThey said “the rapid downgrade on growth stocks may ease as real yields stabilize.”

Stocks are off to a rocky start in 2022, amid a rising bond yields, expectations of a Federal Reserve tightening and the threat of war in Ukraine. The global MSCI ACWI index went down about a 7% in January and is headed for its worst month since March 2020. Meanwhile, the index S&P 500 narrowly avoided a correction on Tuesday, closing at more than 9% from its all-time high on January 1.

“The key for stocks from here is how much this upward shift in interest rate expectations and indeed financial conditions will affect growth,” Goldman’s Oppenheimer said in an interview with Bloomberg Television. “That’s going to be key in determining where equity markets stabilize.”

Citi strategists echoed the sentiment in a note, saying their bear market checklist, which analyzes various fundamental and market factors, suggests buy in the fall. They are particularly optimistic about markets outside the US and prefer defensive sectors What consumption and medical care in the United Kingdom and Japan.

What do the rest of the banks say?

To be sure, not everyone is turning positive. The strategists of Barclays Plc led by Emmanuel Cau They wrote in a note that mutual funds and retail investors keep watching the actions “very overweight”, so it is possible to reduce the risk if the fundamentals worsen.

Still, the positive calls are growing. The Bank of America Strategists they wrote that investors should “buy some falls” in the US and recommended stocks with solid fundamentals and less vulnerability to macroeconomic factors, including chip companies Applied Materials y Broadcom.

Meanwhile, those of Wells Fargo & Co. They were among the first to recommend buy, and they wrote in a note on Tuesday that it is “Time to put new money to work.”