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Another Reason Why You Should Buy, Buy, Buy... Straight From The Sachsth Branch Of Government
With the full frontal we have been doing lately of Team Jan and Team Jim, we have ignored some of the other more prominent strategists at Goldman, which is why today we shift our focus on Chief European Strategist Peter Oppeneimer. We present his most recent comprehensive outlook report titled, not surprisingly, "From hope to growth." Don't expect anything too earth-shattering or against the party line of the government sponsored hedge fund. You will, however at the very least, find out where some of the catchier slogans in the administration come from.
First, a summary of Goldman GDP forecasts for those that need a convenient place to know what various governments will be goalseeking their output to.
Next, here is Goldman caught in the act of spiking the Kool Aid with assorted rose colored chemicals: the chart below highlights various rebounds from initial recession lows:
Goldman proceeds to indicate that the current rally is perfectly normal... if one assumes that a 90 percentile outlier rally is considered normal.
And just in case anyone is still confused what the first step of the "change you can believe in" cycle is, here it is below. Not surprisingly, it fits perfectly with the administration's world view... it is titled "hope."
Here is how earning multiple expansion occurs (as well as actual earnings growth) in the various phases of the "hope" cycle:
Next, we see why in Goldman's regression to the mean mind, a 4.5% global GDP growth is so critical. So what happens if growth is half or less: sales growth of half of the projected 10%.
In order to make it simple for what economic areas Goldman's clients should expect numerous further puff pieces, the firm points out why second derivatives are so much more relevant than actual data:
Goldman is expecting to underwrite much more in new equity through new IPOs and secondary/rights offerings. Over €1 trillion more.
Lastly, here are the sectors in which M&A activity will be positively rampant. Shockingly, there are sectors in which companies have, gasp, positive net cash. Perhaps a weighted distribution would have been more useful here, as last time we checked the bulk of the world was still drowning in debt.
So next time someone asks, where does the government (or at least its Sachs branch) see the global economy headed, you will know. Granted this outlook is somewhat different from the PIMCO branch of the USA, but we'll let it slide. Between Goldman pumping equities and overall corporates, and PIMCO expressing dormant priapism for Treasurys, there is no way you can do wrong. Just make sure you buy whatever Goldman/PIMCO is selling you (and use their brokers if possible) and you can do no harm.After all the ponzi has to keep growing: if and when it stops, it's all over.
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Correct, Tyler. The camels may die, but the caravan moves on. Both sides of the Street are covered. Delirious optomists on this side. Confused contrarians on the other. A bipolar economy, for sure.
On the chart showing the historical data of moves out of bear markets, how come they don't have the period from 1929?
It looks like Zero Hedge is very often a conduit for GS research. Why is that? Since when research papers from a bank serves anything other than the bank itself?
I wonder if oppenheimer seeks to follow in L. ron hubbards footsteps, from science fiction writer, to founder of a new religion? BUY BUY BUY
It looks like very often, ZH is a conduit for GS research. Since when is a bank's research serving any other purpose than the said bank's interests?
Right. So because so far we've followed "the 90th percentille of rallies" What more scientific conclusion to draw than we will continue to do so! I mean isn't this what economics (the stuff that Ben taught in Princeton) really all about? Never mind that this is the first balance sheet recession as well as the biggest such recession since the Great Depression. Never mind that the government went all the way with stimulus measures to the point where the kitty is dry. Never mind that the gov. is constantly manipulating the markets. It is crystal clear: just extrapolate the present trend for a few years and we are all rich again! The only thing one is left to wonder with is: WTF is wrong with Zimbabwe? Is their printing press ancient or something? Or are they just intellectually inferior as Larry Summers would say?
Zimbabwe is much more
advanced than our system.
They were able to get there
faster.
Big L
Don't fight the tape especially when it is printed in advance one month earlier.
On a funnier note. Rantings of a madman.
http://www.youtube.com/watch?v=epe5OF-oyr4
If elected, he won't last a week.
Howard Dividowitz has a different slant on this......I love this guy
http://finance.yahoo.com/tech-ticker/article/381901/Howard-Davidowitz-Se...^n225,spy,dia,udn,uup,qqqq
LOLOLOL +10
Does anybody know if Lloyd Blankfein, having said that he and Goldman Sachs wishes they never participated in the FDIC TLGP, paid off the 22 billion bonds that are being subsidized by the American taxpayer?
Don't know, but his I do know, Blankfeind is short, fat, bald, ugly and rich, his wife is fat and ugly and his kids are trolls..
I felt a brief tingle of excitement, when he mentioned slitting his own wrists.is that bad? I wonder if the rest of his family, felt it too?
Dead. I am starting to get really pissed off. What can i do?
Continue to pester congress critters.
Talk to friends, neighbors, business associates.
Let people know that we have a very serious situation on our hands.
I would also point out that sticking to facts and reasoned discussion is much more productive than ad hominem attacks. In this case, the issue is about Goldman Sachs CEO Lloyd Blankfein saying one thing (wishing it had never participated in a taxpayer sponsored $22 billion cheap money scheme) yet doing another (having the money to pay off the bonds but choosing to pocket it instead).
I think any mention of the man's children is despicable. Don't hold sons and daughters responsible for the sins of their fathers. Yes, I junked you and I urge others to do the same.
It's working. I called both my senators last week. Bernie Sanders website, you can sign the petition against Bernanke. You can see the effect it is having. Prior to this year, would CNN have even run polls on the reconfirmation of a sitting FR Chair? Would said Chair have lost so poorly? It is working.
DH obviously not, you don't think they wouldn't use that event to pump the financials. they only borrow money in secret, when they pay some back, they want to be hailed as saviors.
There is too much GS research on ZH.
Priapism is a serious medical condition. PIMCO just has a normal healthy interest in Treasurys. lol
R2 = .27 that is relvant- i must have missed that in stats 101 (I guess in GS relative world comapred to 0 that proves the negative)
a brilliant headline - a slick all-in-one dig at the villains. i love it all by itself.
When I was a kid I remember a friend of mine saying "I wish that every time I opened my wallet there would be a $5 bill there". Best wish I ever heard at the time. Now if you have billions or trillions we taxpayers will keep that wallet loaded for you ass wipes. They would'nt know how to make an honest buck if someone did'nt change the rules for them.
sqworl, I like your spirit, what we say, is nothing, compared to what they are doing. I would say, it's treason, a crime against the nation, punishable by death. fuck him, and his troll kids. theres plenty of decent people's kids suffering, behind this criminal activity. deadhead,she didn't say anything about the kids being responsible,and maybe they are trolls, how would you know. but they do share the benefits, of his ill gotten gains. I fear the days are approaching, where your offended sensibilities, will be overrun, by much more offensive conditions, much closer to home. other than that I enjoy reading many of your posts. If we can't vent a little,we could self destruct. go ahead and junk me, if it makes you feel better, I understand the frustration, you can be the first.
Cheeky Bastard, where are you when we need you?