Such has been the unpredictable nature of the markets and the economy in 2023, that’s it’s hard to guess what’s coming next.
For example, it should be remembered that at the start of the year and coming off the back of 2022’s merciless bear market, few had predicted the ensuing rally that has taken place since.
Likewise, for the broader economy. Against a backdrop of soaring inflation and high interest rates, there were plenty of financial prognosticators warning of an impending vicious recession. But given the rate at which inflation has cooled lately, those calls have now been replaced by forecasts of a soft landing and a mild recession, at worst.
On the other hand, Tuesday saw big news as Fitch, one of the world’s foremost credit rating agencies, downgraded the United States’ long-term foreign-currency issuer default rating from “AAA” to “AA+.” Fitch’s decision was grounded in their anticipation of a substantial deterioration in the Federal government’s fiscal position over the next three years. Of particular concern was the agency’s observation that the repetitive debt-limit political standoffs and last-minute resolutions have severely undermined confidence in fiscal management.
So, how is an investor meant to make sense of it all? Here some expert advice could come in handy, and this is where the Wall Street analysts, such as those working at banking giant Goldman Sachs, enter the frame. It is their job after all to seek out the names that are primed to do well whatever the macro/market backdrop.
With this in mind, using the TipRanks database, we’ve tracked down two recent Goldman picks, ones which they think have strong gains in them for the coming year – on the order of 60%, or more. Let’s find out why they could surge from here.
Stagwell, Inc. (STGW)
The first stock on our Goldman-backed list is Stagwell, a marketing firm created by Mark Penn and focusing on scaled creative performance for major global brands. The company’s strategy includes the combination of human creativity with the latest data analytics, to bring the…
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