Market Insights

MARKET STRATEGIST INSIGHTS 1 of 2

PORTFOLIO MANAGER INSIGHTS 2 of 2

Market Strategy

Complex markets can be difficult to decipher. We provide investment professionals and their clients with a global perspective to help explain the issues and trends affecting their portfolios.

Chart of the Week

Better Than Feared

S&P 500 Index earnings printed better than feared in 1Q, with both sales and earnings exceeding consensus forecasts. The level of expected profit margins rose in 9 of the 11 sectors, reflecting the first sequential increase in margins in over a year, and is now back at pre-COVID levels. Slowing economic growth remains a downside risk to margins, though we believe resilient revenues and slowing input cost inflation will be supportive of earnings in coming quarters.

Source: Compustat, FactSet, and Goldman Sachs Asset Management.

Market Know-How

Crunch Time

The promising start to 2023 has benefitted from the reduction in acute European energy risk and strong Chinese economic momentum in reopening. Recent data trends have strengthened the global “soft landing” narrative, though good news remains a double-edged sword. Resilient growth may potentially invite additional rate hikes and threaten to elongate the economic adjustment that began last year. Consequently, the evolution of the growth-inflation mix and commensurate monetary responses remain our prevailing risk in 2023.

2Q2023 Themes

1Municipal Bonds: Staying Local

2International Equity: Near-term Catch

3Private Credit: Giving Credit to Private Credit

GSAM Connect

May 11, 2023

Artificial Intelligence: An Unprecedented Disruption

This publication explores some of the ways AI can potentially create significant business value and investment opportunities in companies aligned with long-term secular growth drivers.

May 11, 2023

Spring Forward with Munis

Recent banking sector stress has led many investors to seek safety in money market funds. However, investors could be missing out on a longer-term opportunity to lock in historically attractive rates. Learn why we believe seasonal patterns and a nearing end to the Fed’s hiking cycle are poised to support municipals in the coming months.

May 10, 2023

Hedge Funds: Improved Prospects in the Post-Modern Cycle?

We believe that the challenging macro-backdrop, informed by heightened geopolitical risk, de-globalization, and more expensive energy and labor costs, may bode well for hedge funds.

Stay posted on the latest market developments and key themes for your portfolios and practices

More Market Strategy

May 2023

Monthly Market Pulse: May

Our appetite for increasing duration in fixed income has grown as we near the end of the Fed’s rate hiking campaign. In our view, the risk asymmetry is appealing as higher yields on the long end may counterbalance further rate upside. As such, we believe the decision to add back duration is best addressed now through municipal bonds. History has rewarded early duration movers in the past six hiking cycles, with municipal bonds also outperforming US T-bills following historical peaks in policy rates.

December 2022

Point Break

Inflation continues to be the dominant global concern, even in a world of complex geopolitical dynamics that include military conflict in Ukraine, territorial flexing by China, and entrenched societal polarization. We expect the evolution of inflation and commensurate central bank responses to remain the prevailing theme in 2023. While waiting for the wave to break, however, investors must learn to surf.

View more perspectives on the latest market developments and trends

Stay Informed and Be Ahead of the Curve

MARKET MONITOR

Weekly views from senior Goldman Sachs economists and strategists

MARKET KNOW-HOW

Triannual insights on market conditions and timely investment ideas

MARKET PULSE

Monthly market commentary coupled with insights on portfolio construction

GSAM CONNECT

Posts on the latest market developments and key themes for your portfolios

MANAGE SUBSCRIPTIONS

Asset Class Views

Access the latest views from our product teams on macro strategies and browse insights by key topics, such as equities, fixed income, money markets and alternatives.

May 26, 2023

Global Fixed Income Weekly: MusinGS

In this weekly insight, we bring the global economy and fixed income markets to you. Macro at a Glance covers the latest developments in growth, inflation, and labor markets, while Policy Picture and Central Bank Snapshot details our outlook for monetary and fiscal policies. Fixed Income Navigator summarizes how our view of the world and financial markets informs and impacts our investment views.

GOLDMAN SACHS RESEARCH

Follow trends in the global economy, including policy issues and analysis of economic development from Goldman Sachs Global Investment Research.