Markets News Stocks 

Goldman Sachs just dumped a trade recommendation that’s crushed the market over the past 2 years. Here’s why, and what it means for investors.

“There have been 7 cycles of strong balance sheet stocks outperforming weak balance sheet stocks since 1980.” 4″ writes Akin Oyedele for businessinsider.com. The strong run for companies with strong balance sheets is over for now, according to Goldman Sachs.The relative valuation of strong vs. weak balance sheet stocks ranks in the top quintile versus the past 35 years. “Based on five different metrics, the relative valuation of strong vs. weak balance sheet stocks currently stands in the 85th historical percentile since 1980.”. Companies with strong balance sheets have outperformed those with weaker balance sheets by 25 basis points since the Fed started raising rates, he said in a recent note to clients.
 
Source: businessinsider.com



Related posts