Goldman Sachs's most recent trend suggests a bullish bias. One trading opportunity on Goldman Sachs is a Bull Put Spread using a strike $235.00 short put and a strike $230.00 long put offers a potential 36.24% return on risk over the next 8 calendar days. Maximum profit would be generated if the Bull Put Spread were to expire worthless, which would occur if the stock were above $235.00 by expiration. The full premium credit of $1.33 would be kept by the premium seller. The risk of $3.67 would be incurred if the stock dropped below the $230.00 long put strike price.
The 5-day moving average is moving up which suggests that the short-term momentum for Goldman Sachs is bullish and the probability of a rise in share price is higher if the stock starts trending.
The 20-day moving average is moving up which suggests that the medium-term momentum for Goldman Sachs is bullish.
The RSI indicator is at 68.77 level which suggests that the stock is neither overbought nor oversold at this time.
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LATEST NEWS for Goldman Sachs
Goldman's Metal Bull Has Tunnel Vision
Wed, 09 Dec 2020 00:00:12 +0000
(Bloomberg Opinion) — The metal bulls are charging. Goldman Sachs Group Inc., which sees a commodities rally ahead on a par with the 2000, says copper could test its record high of just over $10,000 by 2022. The metal has already surged to almost $8,000 this year. Nickel is also on a tear, zinc has climbed more than 50% since March, and iron ore is closing in on $150 a ton.The post-Covid future does look rosy. Only, we’re not there yet.Exuberance is only natural, to some extent. The vast majority of us will be glad to see the end of a year spent in varying stages of lockdown. We are all focusing ahead. In commodities terms, that translates into looking through the next few months of winter Covid-19 surges, extra closures, vaccine distribution delays and other hiccups, into a world where life returns to normal.The optimism is also grounded in reality. There is no question that things are looking up for commodities, and particularly base metals. There is significant government spending globally, the U.S. dollar is weak and monetary policy is loose. Industrial and consumer demand will recover. Supply, meanwhile, will probably struggle to keep up with something close to a V-shaped recovery, after a long period of frugality following the splurge of 2012 and 2013.Copper is a good example of what’s at stake. The red metal has had its sharpest rally in a decade, rising more than two-thirds from its March lows. That’s largely thanks to China, where strong demand, infrastructure spending and government stockpiling have offset weakness elsewhere — even if imports have moderated of late. The State Reserve Bureau has added as much as 500,000 tons of copper inventories in 2020, according to analysts at Jefferies Group LLC.Appetite is expected to increase globally as other economies bounce back, and copper-heavy green stimulus plans kick in, at a time of low inventories. Demand may exceed output. Glencore Plc, a major producer, last week put the copper project pipeline at pre-supercycle lows. Goldman sees the tightest conditions in a decade, and others too, to a greater or lesser extent, project deficits ahead.Yet there’s a risk that the commodities market is paying more attention to the light at the end of the tunnel than to the darkness before we get there, as Vivek Dhar of Commonwealth Bank of Australia puts it. The road is still long and bumpy, even for copper.For a start, green shoots of recovery seen in the summer and autumn are wilting as winter sets in and Covid case numbers rise. U.S. Federal Reserve Chair Jerome Powell has been among those warning of challenges and uncertainties in the near term as outbreaks widen in the U.S. and beyond. In Europe, a second wave of infections and lockdowns is hurting — even if restrictions are less stringent than the first time around.While vaccine approvals are undeniably good news, inoculation on a scale that will dent hospitalizations and deaths is some way off. Vaccines won’t lead to automatic lifting of all travel and other restrictions. That will take months, or more. Then there’s China, which has single-handedly held up global commodities demand this year, but where appetite may be cooling. That doesn’t mean a drop. Still, uncertainty surrounds exactly what the end of stimulus-fueled growth will look like, and indeed the exact shape of consumption in an economy attempting to hit President Xi Jinping’s net-zero emissions target. There are also questions over the extent of debt risks and what that may mean for the world’s largest consumer of commodities, as non-payments rise. Five state-linked companies — from a chipmaker to an auto company with ties to BMW AG — have defaulted in the onshore bond market this year. That’s the most since 2016. Market bulls are no doubt right about where we end up in a year or so. Goldman may well be correct in asserting that green spending can rival the investment splurge of 20 years ago, and a consumer boom is possible. We just need to see it happen. This column does not necessarily reflect the opinion of the editorial board or Bloomberg LP and its owners.Clara Ferreira Marques is a Bloomberg Opinion columnist covering commodities and environmental, social and governance issues. Previously, she was an associate editor for Reuters Breakingviews, and editor and correspondent for Reuters in Singapore, India, the U.K., Italy and Russia.For more articles like this, please visit us at bloomberg.com/opinionSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
We’re Still Only Halfway to Electric Cars
Tue, 08 Dec 2020 23:00:13 +0000
(Bloomberg Opinion) — For all the enthusiasm around full battery-powered electric cars, we’re still only halfway there. In reality, the hybrid will own the electrified side of the road for some time to come.Investors have run up the stock prices of electric car companies and their valuations far higher than the businesses really warrant. Electrics amounted to just 2.6% of total vehicle sold in 2019, and made up only 1% of all automobiles on the road. The share of sales is projected to rise to 6.6% by 2040.On the other hand, hybrids, which use powertrains combining internal combustion and electric motors, are finding increasing favor with consumers. Sales peaked in 2013 in the U.S., coinciding with the year Tesla Inc. initially said it planned to start deliveries of its Model S full-electric sedan. But purchases of hybrids have ticked up over the last couple of years, and they’re now penetrating global auto markets at a far faster pace than pure electric vehicles.Earlier this month, Toyota Motor Corp., which introduced the Prius a generation ago, said that hybrids will account for a quarter of its sales in 2021. Such vehicles account for an increasing share of cars sold by Japanese automakers. Think of the Honda’s Insight or Civic. Globally, several firms are making hybrid versions of their models (such as the Ford Fusion, Chevrolet Impala or Lincoln MKZ), chipping away at Toyota’s global share of this sub-segment to around 30% from 80%. Part of this is policy, part the cost of battery technology. As policy makers realize that the dream to go green with cleaner, full-electric vehicles is at least a decade away, they’ve started accommodating hybridization. The mixed-power vehicles can cut carbon dioxide output by 10% to 30%, getting governments at least some distance toward their climate goals. China will now include hybrids in its going-green vehicle regulations, based on their fuel efficiency, after previously excluding them. In keeping with that, Mercedes Benz AG-owner Daimler AG and China’s top domestic car maker, Geely Holding, announced last month that they’ll join forces to develop a hybrid powertrain to be manufactured there and in Europe.The fact is that automakers are still finding the cost of electric vehicle and battery technology tough to digest, especially after industry sales tanked over the last year thanks to Covid-19. Despite all its corporate governance troubles, Nissan Motor Co. is an electric car bull and its Leaf model is well-liked. Even so, the company thinks electrics will reach the profitability of gasoline-powered models only by 2030, “citing such a target for the first time,”(2) according to Goldman Sachs Group Inc. analysts. To get there, battery costs will have to fall to $65 per kilowatt hour from $150 to make them relatively affordable for consumers.All the while, regulators are pushing more stringent fuel-economy standards. In the U.S., the new Biden administration could use higher fines to encourage manufacturers to electrify their fleets, Nomura Holdings analysts say. But setting up such incentives with electric cars and pushing regulation too fast can backfire. Hybrids are one compliance solution, if not necessarily the technology transition that consumers might have chosen. They’re cleaner, not clean, and some are dirtier than others. The plug-in type, for instance, has been dubbed by Greenpeace as “the car industry's wolf in sheep's clothing.” Others hold more promise, such as strong hybrids versus the mild type whose weaker motors can’t power the vehicles on their own.Given the gritty details of the clean technology curve, investor expectations lie too far into the future. Hydrogen fuel cells? Even more expensive. Get used to it: We won’t all be driving electric cars soon. Your next ride might simply be electrified.(1) It doesn’t account for government subsidies, or price premiums over internal-combustion engine cars.This column does not necessarily reflect the opinion of the editorial board or Bloomberg LP and its owners.Anjani Trivedi is a Bloomberg Opinion columnist covering industrial companies in Asia. She previously worked for the Wall Street Journal. For more articles like this, please visit us at bloomberg.com/opinionSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
BNY Mellon's Keating Has Some Tips for Investors
Tue, 08 Dec 2020 18:30:12 +0000
(Bloomberg Opinion) — Catherine Keating, the chief executive officer of BNY Mellon Wealth Management, which oversees $2 trillion of assets and serves 77% of the Fortune 500, has some advice for investors as the end of the year rapidly approaches: consider taking taxable gains now, especially in highly appreciated concentrated positions. This week’s guest on the Masters in Business podcast says if it makes sense for investors and fits with their long-term plans, selling stock in 2020 and rolling the proceeds into a more diversified set of holdings could avoid potentially higher capital gains tax rates in the future.https://megaphone.link/BLM8247702034Keating, who has been named to the “Most Powerful Women in Finance” list and one of the “Most Powerful Women in Banking” list by American Banker, notes the advantages of carefully selected alternatives in an era of lowered return expectations. Capturing the illiquidity premium could make up the difference for a longer-term investor. She points out that in today's ultra-low interest rate environment, philanthropic gifts are “on sale.” The compelling opportunity today is that low rates makes retained interest very advantageous.Numerous technical estate and tax planning issues today seem historically unique. There are also numerous “tax alpha” strategies investors should explore. Estate laws that will lower the tax-free amount of estates are scheduled to expire in 2025, creating a “donut” investors need to plan around unless the new administration changes the law – which is unlikely.A list of her favorite books are here; A transcript of our conversation is available here.You can stream and download our full conversation, including the podcast extras on iTunes, Spotify, Stitcher, Google, Bloomberg, and Acast. All of our earlier podcasts on your favorite pod hosts can be found here.Be sure to check out our Masters in Business podcast next week with Mike Swell, head of global fixed income at Goldman Sachs Asset Management. Swell is responsible for co-leading the global team of portfolio managers that oversee more than $700 billion in multi-sector bond portfolios.This column does not necessarily reflect the opinion of the editorial board or Bloomberg LP and its owners.Barry Ritholtz is a Bloomberg Opinion columnist. He is chairman and chief investment officer of Ritholtz Wealth Management, and was previously chief market strategist at Maxim Group. He is the author of “Bailout Nation.”For more articles like this, please visit us at bloomberg.com/opinionSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
Morning Bell With Jim Cramer: Elon Musk Is Moving to Texas
Tue, 08 Dec 2020 14:38:00 +0000
Jim Cramer shares insights about what to expect from the Biden COVID team, the impact of stimulus deal on traders, and Goldman Sachs and Tesla moving offices.
Goldman (GS) to Acquire 100% Stake in China Joint Venture
Tue, 08 Dec 2020 12:01:12 +0000
Goldman (GS) to acquire 100% stake in its securities joint venture in China.
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