Missing January stock market rally? Well, then you probably missed most of the 2019 best wins, says strategists at Goldman Sachs.
The main US benchmarks reached a boomlet last month, following a disguised stretch that took hold in October and culminated in a brutal decline of bullish investors on December 24, marking the worst downturn of the season immediately before Christmas on record.
But from the low point, the Dow Jones Industrial Average
DJIA, + 0.57%
has climbed 1
SPX, + 0.30%
has risen by around 16.3%, Nasdaq Composite
COMP, + 0.58%
increased by 19.3%, while the small capitalization focused Russell 2000
RUT, + 0.17%
has skipped more than 20%, according to FactSet data.
Read: Nasdaq is on the verge of escaping from the bear market
See also: MarketWatch's Snapshot of the Market
"We claimed that a modest jump at a time early a year was likely, and if investors missed it, there would be a risk of missing most of the year's returns, "Goldman analysts, including the strategies Sharon Bell and Peter Oppenheimer, wrote in a survey report dated 4 February.
"The rally we expected has happened quickly, and given this, we see relatively modest returns on stocks from here." Goldman said.
The strategists make the case to argue that in December, nadir is not & # 39; It is likely to be reassessed soon, a period of "flat and thin" trading areas for stock markets is in the off.
"So given this we see no reason to go back to December downs. But while we saw a bounce in the stock markets in 2019, we also claimed that this would be followed by the resumption of a" flat and thin "trading area with relative low returns on stocks, the strategies say.
Goldman economists believe that the current US environment, characterized by a federal reserve that may be slightly more accommodating than it was presented in December, will support growth outside the United States along with crude oil prices.
which had fallen sharply with risk benefits such as stocks.
This background should stabilize the weak global growth that has caught much of the developed world and emerging markets such as China, although it does not result in a new rally for US stocks.
In the flat and thin environment, Goldman is bullish, or overweight, technology, especially in the digital economy and business sector, and optimistic on the heath care name.
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