Stock market advice post-Trump election: Immediate purchasing of stocks recommended
In a recent analysis, Goldman Sachs analysts have forecasted a potential 15% decline in merger and acquisition (M&A) activity this year, but anticipate a significant turnaround with a 20% increase by 2025 under a new presidency of Donald Trump. However, it's important to note that these predictions are primarily based on the current economic climate, expected changes under Trump's presidency, and the potential repositioning of investors' funds, rather than specific forecasts for the U.S. stock market until the end of 2020 or the impact of the 2016 election.
The latest Goldman Sachs market outlooks focus on 2025, emphasising factors such as earlier-than-expected interest rate cuts, strength in large-cap stocks, and Fed easing policies. The analysts expect the S&P 500 to gain 6% by year-end 2025 and 11% over the next 12 months.
The expected increase in M&A activity under Trump's presidency, as suggested by Goldman Sachs, should have a positive impact on stock prices. Their Cash M&A model predicts that solid economic and EPS growth, relatively accommodative financial conditions, and limited stock market volatility will support merger and acquisition activity. Furthermore, the model predicts a 20% increase in Initial Public Offerings (IPOs) by 2025 under Trump's presidency, which could also have a positive impact on stock prices.
The political uncertainty that has prevailed in recent months is now a thing of the past, and this clarity following the U.S. election is partly responsible for the expected market gains. Goldman Sachs analysts have provided a forecast of market trends until the end of the year, suggesting that investors can expect new record highs on the markets.
However, it's worth noting that the Goldman analysts' forecast for U.S. equities does not account for any potential negative factors that may arise under Trump's presidency. The analysts' predictions are based on the assumption that investors will shift their investments and reposition themselves in response to the election results.
Recent economic growth data and continued Fed rate cuts support a healthy near-term outlook for U.S. equities. Many investors have recently sold stocks due to uncertainty, but with the election results now clear, there is potential for a significant rebound in the market.
Business Insider has reported on Goldman Sachs' expectations for the markets, highlighting the analysts' optimistic outlook for U.S. equities and increased M&A and IPO activity under Trump's presidency. The S&P 500 has typically gained around four percent between the U.S. election day and the end of the year, and with the election results now clear, investors may start to regain confidence in the market.
In summary, Goldman Sachs analysts have provided a positive outlook for U.S. equities and M&A activity under Trump's presidency, based on the potential repositioning of investors' funds, increased M&A and IPO activity, and a healthy economic outlook. However, it's important to remember that these predictions do not account for any potential negative factors that may arise under Trump's presidency.
Investors might be encouraged to invest in the stock-market, considering Goldman Sachs' prediction of a 20% increase in Initial Public Offerings (IPOs) by 2025 under Trump's presidency. Furthermore, the firm's Cash M&A model indicates that investing in stocks could potentially yield favorable returns, as solid economic growth, accommodative financial conditions, and limited stock market volatility are expected to support merger and acquisition (M&A) activity.
