Goldman Sachs: These group of stocks will outperform when Fed starts to cut rates, should you invest?
interest rates, Goldman Sachs has jumped on the opportunity of predicting a handful of stocks that could end up giving brilliant returns right after the Fed comes to the implementation stage.
Will some stocks see growth after Fed rate cuts?
As per a Business Insider report, as soon as the Fed slashes interest rates, be it 25 or 50 bps, mid-cap stocks could see a far greater growth than others, helping in wealth generation for US investors, says Goldman Sachs. It is evident that ongoing recession fears could be detrimental for the US economy, but other market forces, including reduced inflation levels, are also being helpful to pacify US investors around the strength of the US economy.
There is no official date around the Fed rate cut as of now, but as fears of an impeding recession grow stronger, some stocks are being forecasted to yield nearly 13% returns in the next year, following a rate slash.
Mid-cap equities could be a major savior
Mid-cap equities have, over the years, given significant returns to US investors, and with concerns around the volatility of the US economy, more people would begin relying on certain group of stocks in the mid-cap family for wealth generation in this scenario, feels Goldman Sachs.
Moreover, mid-caps have the knack of offering optimum returns, in terms of growth and quality, and that too at a discounted price, which the large-caps do not offer. This makes it evident that US investors would turn to mid-cap stocks at this crisis period, and not rely on small-caps and large-cap
