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

Labor Market Mismatch

In the US, the mismatch between labor supply and demand is top of mind for policymakers. While the ease of finding a job has returned to pre-pandemic levels, labor market supply remains suppressed due to early retirement, generous unemployment benefits, and lingering health concerns. Individuals that would otherwise take jobs on offer appear to be delaying the search.

Source: FactSet, Goldman Sachs GIR, and Goldman Sachs Asset Management

Market Know-How

Faster, Higher, Stronger

Some of the moves in fixed income markets this year— such as the sell-off in Treasuries—have been faster than anything we have seen in recent years, and bond markets may remain in a state of flux for the remainder of 2021. As a consequence, core fixed income allocations require risk-aware active management, and security selection in credit markets may become an increasingly differentiated source of returns.

Edition 2 Themes

1The fast lane

2Macro matters

3Why diversify?

4Eggs in many baskets

5Keep it private

6The taxman cometh

GSAM Connect

June 2021

Four Challenges for Investors Today

In the 12 months ending March 31, the S&P 500 delivered the 3rd best return on record. Historically, the period following such a surge has retained its strength. In past instances of major equity market drawdowns (>30%), returns in the second year of recovery have averaged nearly 20%. We think the macro backdrop is still highly supportive for risk assets, with momentum from the vaccine- and policy-fueled economic normalization likely pulling returns forward. The opportunity cost of not being invested is high, but there are valid market concerns about: 1) taxes, 2) rates, 3) inflation, and 4) prices. As such, we think investors should build a strategic, front-footed approach to today’s market environment.

May 2021

Investing With Impact: Benefitting Society, Boosting Performance Potential

Environmental, social and governance (ESG) factors were once considered “nice to have” for investors who wanted to align their portfolios with their values. Today, we think incorporating them is essential for generating outperformance.

May 2021

Credit Check-In: From Resilience to Recovery

The Credit Check-In is a monthly investment insights publication that features developments across corporate credit markets.

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

More Market Strategy

Monthly Market Pulse: June

US tax rates are likely to rise for top earners, though the final outcome may be more moderate relative to the Biden administration’s proposal. While higher tax rates are a sticker shock to investors, we think the investment opportunity set still looks robust. The market impact from higher taxes has historically been temporary, and investors with long-time horizons still gain more from deferring taxes due to the power of compounding. That said, we believe strategically deploying tax-efficient strategies may help investors keep more returns in their pockets.

December 2020

Climate of Change

As we look into 2021 and beyond, we think global policymaking will be less governed by the latest political victory than by the realities of massive sovereign deficits, shifting demographics, and environmental conditions. COVID-19 has only accelerated this climate of change and the need for prescriptive solutions and investment.

View more perspectives on the latest market developments and trends

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.

How High to Hike

Our portfolio manager discusses how machine learning interprets investor sentiments and extracts topical subjects

LEARN MORE

June 2021

Global Fixed Income Weekly

Each week the Fixed Income team releases its views on macro strategies including duration, country, cross macro and currency, and sector strategies such as securitized debt, corporate credit and emerging markets debt.

GOLDMAN SACHS RESEARCH

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