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Goldman Sachs believes the US economy will slow to a crawl next year

Posted on 11/19/18 at 12:32 pm
Posted by Northwestern tiger
Long Island NY
Member since Oct 2005
23485 posts
Posted on 11/19/18 at 12:32 pm
quote:

Goldman predicts 2.5 percent and 2.2 percent growth in the first two quarters of 2019, respectively, but then just 1.8 percent and 1.6 percent real GDP growth in the final two quarters.
"We expect tighter financial conditions and a fading fiscal stimulus to be the key drivers of the deceleration," wrote the bank's chief economist, Jan Hatzius.
But Goldman believes the U.S. will skirt a recession next year.


I like it when there expectations are low.

LINK
Posted by upgrayedd
Lifting at Tobin's house
Member since Mar 2013
134865 posts
Posted on 11/19/18 at 12:36 pm to
I've had a commercial developer tell me this a few months ago. Apparently, much of the commercial construction/real estate industry knows this is coming
Posted by Vacherie Saint
Member since Aug 2015
39498 posts
Posted on 11/19/18 at 12:38 pm to
That may very well be the case. Its not like the Trump economic agenda will be advanced in any way shape or fasion with a dem controlled House.
Posted by cokebottleag
I’m a Santos Republican
Member since Aug 2011
24028 posts
Posted on 11/19/18 at 12:40 pm to
Not surprising.

Slowdowns periodically are natural.
Posted by Bourre
Da Parish
Member since Nov 2012
20280 posts
Posted on 11/19/18 at 12:43 pm to
I’m not surprised considering the Democrats are already talking about more regulations


I also predict their will be more focus on the economy by the liberal msm, compared to the success of the last 2 years, in an effort to talk the economy down to help Democrats win in 2020
This post was edited on 11/19/18 at 12:46 pm
Posted by Ag Zwin
Member since Mar 2016
20004 posts
Posted on 11/19/18 at 12:45 pm to
quote:

I've had a commercial developer tell me this a few months ago. Apparently, much of the commercial construction/real estate industry knows this is coming



I'll take "Self-Fulfilling Prophecies" for $500, Alex.
Posted by Bard
Definitely NOT an admin
Member since Oct 2008
51675 posts
Posted on 11/19/18 at 12:47 pm to
Chase was predicting the beginnings of a recession in late 2020 but the success we've seen from the regulatory and tax cuts caused them to push that back to 2021.

My worry now is that with the Dems set to take over the House at the beginning of the year they will skewer any trade deals he might have been able to create with these trade wars. At the least I would like to see the USMCA signed before the Dems take office (but that's probably a pipe dream since speculation about a signing at G20 have died off significantly since the beginning of October).
Posted by 90proofprofessional
Member since Mar 2004
24445 posts
Posted on 11/19/18 at 12:51 pm to
quote:

But Goldman believes the U.S. will skirt a recession next year.

that framing seems quite pessimistic

i wouldn't quite call an annual figure of ~2% a "crawl", either. but a few quarters at 1.6 or worse, maybe
Posted by GumboPot
Member since Mar 2009
118850 posts
Posted on 11/19/18 at 1:06 pm to
quote:

Goldman predicts 2.5 percent and 2.2 percent growth in the first two quarters of 2019, respectively, but then just 1.8 percent and 1.6 percent real GDP growth in the final two quarters.


This used to be the standard of excellence when Obama was president.
Posted by TimeOutdoors
AK
Member since Sep 2014
12123 posts
Posted on 11/19/18 at 1:08 pm to
I was told the stock market would crash after Trump was elected.
Posted by TBoy
Kalamazoo
Member since Dec 2007
23729 posts
Posted on 11/19/18 at 1:08 pm to
Sounds reasonable. So much of the last few quarters has been tax cuts and stimulus. I've referred to that a "juicing" the economy to create government driven growth, and apparently Goldman agrees. Once the cash infusion works its way through the system, things go back down.

Also, we have (at least from what I've seen) a fundamentally strong economy right now. So that supports the no-recession projection.

Tariffs and restrictions on global trade have and will continue to have a negative effect. I can't imagine that America's present disdain for the rest of the world helps things, but it is difficult for a non-expert to quantify the negative effect. Without a doubt we could be in an even better position absent Trump's anti-trade policies.
Posted by beerJeep
Louisiana
Member since Nov 2016
35047 posts
Posted on 11/19/18 at 1:12 pm to
quote:

like it when there


Where?
Posted by Damone
FoCo
Member since Aug 2016
32850 posts
Posted on 11/19/18 at 1:12 pm to
Dem priorities are:

1a. Muh Russia
1b. Tanking the economy
Posted by Meauxjeaux
98836 posts including my alters
Member since Jun 2005
39980 posts
Posted on 11/19/18 at 1:18 pm to
Global Currency Reset.
Posted by foshizzle
Washington DC metro
Member since Mar 2008
40599 posts
Posted on 11/19/18 at 1:20 pm to
This is nothing. If stocks crash Trump will blame it on Congress and his Trumpkins will nod excitedly.
Posted by Mo Jeaux
Member since Aug 2008
58807 posts
Posted on 11/19/18 at 1:24 pm to
quote:

So much of the last few quarters has been tax cuts and stimulus.


So much?
Posted by teke184
Zachary, LA
Member since Jan 2007
95754 posts
Posted on 11/19/18 at 1:28 pm to
A Dem congress tends to have that effect, but the President ends up with the blame if he is Republican.
Posted by someoneBEE
Member since Aug 2016
698 posts
Posted on 11/19/18 at 1:34 pm to
quote:

Goldman Sachs downgrades Microsoft’s stock, says they will ‘gradually deteriorate’ if they don’t change
RON EMAIL @RONWINBETA APR 12TH, 2013 IN LATEST NEWS

Microsoft just cant catch a break these days. But negative or positive press is a result of being the software giant. According to a new report, Goldman Sachs has downgraded Microsoft’s market share from “hold” to “sell.”

Heather Bellini, an analyst at Goldman Sachs, is recommending that investors sell their Microsoft stock and downgraded the software giant’s stock from neutral (hold) to a negative rating (sell). Bellini believes Microsoft will gradually deteriorate if they don’t change their direction right away.



quote:

Goldman Sachs on Microsoft: Sell now
JULIE BORT APR 1, 2015, 11.29 PM

Microsoft's stock is trading at about $40, coming slightly back down earth since November, when it reached a 14-year high of about $50.
And it's time to sell, warns Goldman Sachs in a scathing research note on Tuesday.

The Goldman Sachs team, led by analyst Heather Bellini, believe the stock will drop to $38 within the next 12 months.




quote:

Goldman Sachs on Microsoft: 'We Were Wrong'

By Luke Kawa
18 December 2015, 19:33 GMT+5:30

Goldman Sachs is throwing in the towel on its bearish stance on Microsoft, upgrading its shares to "neutral "and boosting its 12-month price target to $57 from $45 on Friday.

The technology company has vastly outperformed the S&P 500 since analysts downgraded it to "sell" in April 2013:




In a note to clients entitled "Righting a Wrong," analysts led by Heather Bellini explain what they missed.

quote:

"We upgrade Microsoft to Neutral from Sell. Since its addition to the Sell list on 4/11/2013, Microsoft is +84 percent vs. the S&P +29 percent. Despite out year estimates consistently compressing, we failed to appreciate that the stock would disconnect from downward EPS revisions, and the significant upward re-rating of the multiple driven by Microsoft’s transition to the cloud (Office 365 and Azure). We were wrong. On average, out year consensus EPS [earnings-per-share] estimates have declined 11 percent in fiscal-year 2015 and 13 percent in fiscal-year 2016 from one year before the beginning of the fiscal-year, yet during that time Microsoft’s NTM P/E [next 12 months price-to-earnings ratio] multiple has increased from 10x to 20x."



quote:

Microsoft from 2013 to 2018 :-


Posted by TigerBlazer
Member since Aug 2016
836 posts
Posted on 11/19/18 at 2:51 pm to
quote:

A Dem congress


Did i miss something? Dems dont control congress
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