As we reported over the weekend [6], a rather concerned Goldman proclaimed the great momo rally - that one that led to so much gains in 2013 and to many losses so far in 2014 - dead, and in a sign that far less euphoria is coming over the horizon, said that while momentum stocks will hardly recover their panic buying highs, suggested that the best the S&P 500 can hope for - if history is any guide - is for a 5% rise in the broader market over the next 6 months (what it didn't add is that hardly any algos, and certainly no self-respecting TBTF banker, get out of bed for a measly 1% return per month). Perhaps more imprortantly, what Goldman also remarked on was what it thought would be the stocks that should benefit from the rotation out of momo names and into slower growth, low valuation, low momentum names.
The list of S&P 500 stocks with "low momentum, low valuation, and low growth based on Goldman Sachs Micro Equity Factors as of April 10, 2014, is shown below.
[7]
Is this merely another muppet trap as Goldman is now selling low momo stocks and buying back into the uber-high beta names, or is Goldman actually concerned about its clients' well-being this time around... speaking of which, where's Stolper? We'll let readers decided for themselves.