Goldman Sachs says growth stocks' risks reduced while Morgan Stanley says no
For growth stocks that have been hit hard recently, the situation may not be as dire, according to Strategists at Goldman Sachs.
After the recent sell-off in growth stocks caused by the surge in Treasury yields, we now expect only modest further moves in long-term yields.
The bank's strategists wrote in a note to clients, meaning that further risk to growth valuations from the discount rate is limited.
"The possibility of slower growth in 2022 is a case for growth stocks," the Goldman strategists said, adding that comparisons to the tech bubble at the turn of the century may not be entirely appropriate. "
Adjusted for the interest rate environment, valuations for growth stocks today are much lower than they were in 2000.
Morgan Stanley expressed different opinion.
The bond market suggests further upside for value stocks relative to growth stocks, while growth fears are a risk for value stocks, but we haven't seen signs of them yet.
If yield pressure continues to rise, broad indexes may have more room to fall than they did in the past few months when they underperformed.
$S&P 500 Index (.SPX.US)$ $Nasdaq Composite Index (.IXIC.US)$ $Dow Jones Industrial Average (.DJI.US)$ $Tesla (TSLA.US)$ $Microsoft (MSFT.US)$ $Meta Platforms (FB.US)$ $Wells Fargo & Co (WFC.US)$ $Bank of America (BAC.US)$ $Goldman Sachs (GS.US)$ $Morgan Stanley (MS.US)$ $Blackrock (BLK.US)$ $Taiwan Semiconductor (TSM.US)$ $GE Aerospace (GE.US)$
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Jollymoney John : @SimplyDestiny@Cindy Hocog
Soh777 : Its quite confusing when the 2 Companies' opinions differs. Sometimes it's difficult to choose which to believe and follow especially we are new and have no knowledge.
Giovanni Ayala : That's why they have maid Graphs so you can observe Gains from losses
Freddy Perez : I need a Dictionary
GeorgeSorosShort : Buy
Upncoming1841 : Both companies painted possible scenarios and the different projections are interesting. Personally, I am going with Goldman's analysis.
ETFWorldSavior OP Soh777 : That' why I try to offer you guys these different opinions, and you will have more information to make your own investment decision.![[undefined]](https://static.moomoo.com/nnq/emoji/static/image/default/default-black.png?imageMogr2/thumbnail/36x36 "undefined")