Goldman Explains "Where To Invest Now"
Goldman's David Kostin has just released a whopper of a 72-page script for the latest episode of the "El Muerte De Muppet" telenovella in the form of a comprehensive report titled "Where to invest now - Cliff Notes". And since the qualifier is obviously a reference to the fiscal cliff which Congress will continue to ignore as long as the market is at or near 2012 highs courtesy of Ben Bernanke's politicized promises of massive easing on any market downtick, thus providing zero impetus for any proactive legislation that resolves the imminent GDP collapse, one can provide a not so rhetorical answer to Goldman's rhetorical question: "nowhere" (if one is limited to investing in paper-based pyramid schemes of course in which the "catalyst" is not hope and prayer for more printing or the emergence of a greater fool).
The "Cliff Notes" Cliff notes:
Our attached client handout “Where to Invest Now” includes key exhibits we use to analyze the US equity market. The subtitle of the presentation is “Cliff Notes” and refers to our view that many investors are too complacent regarding “fiscal cliff” risks for both the economy and stocks (pages 3-13). We show the weak outlook for sales, margins, and earnings (pages 14-27). We present six approaches to valuation (pages 28-33). We explore corporate and investor money flow trends (pages 34-39), review sectors (pages 40-44), and assess hedge fund positioning (pages 46-52). We conclude with our strategy basket recommendations (pages 53-64).
and the Cliff chart of the "Cliff Notes":
and full slideshow:
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