In an initial market reaction, the fresh FOMC minutes were interpreted as dovish. In terms of tapering time signals, there was nothing for short-term bulls. However, the overall image is that the Fed is preparing for a speedier policy normalization because the economy has recovered more quickly than predicted. Increasing interest rates benefit financials, therefore Goldman Sachs’ strong seasonals are worth checking out.
Over the last 14 years, Goldman Sachs’ stock has increased in value 12 times between July 9 and July 29. With a -12.34 percent drop in 2007, 2007 was the worst year. With an 11.33 percent profit in 2009, it was the best year. The average rate of return has been 3.80%.
Key Trade Risks: If there is a big sell-off in US markets, a risk-off move could initially pour over into the share price.
Find out more about HYCM./n
Read More
