Goldman Sachs Shared Its Dollar and Stock Analysis

Goldman Sachs shared its dollar and stock analysis. The agency stated that the US dollar will continue its downward trend.

Goldman Sachs Strategists, including David J. Kostin, stated in a research report that the structural decline in the dollar and the accelerated global growth compared to the US will benefit the shares of global US companies rather than the shares of local companies. The strategists stated that the technology sector had the highest rate of foreign income with 58 percent, followed by materials with 51 percent and energy companies ranked third with 42 percent. Stating that chip equipment manufacturers are the sector with the highest foreign income with 80 percent, Goldman Sachs strategists underlined that international sales accounted for 28 percent of the S&P 500 revenue and 21 percent of the profit. Strategists stated that while economic growth in the US will reach its peak this quarter, Europe, Japan and others will not reach their peak before the third quarter. Stating that the US dollar will be in a downward trend until 2024 with the dovish messages of the FED (US Federal Reserve) and the strengthening of global growth, strategists point out that they expect tax increases as the main risk for global companies, but it is also important to monitor which laws will pass.