Business Insider reports that US stocks are on course to close lower for a third consecutive week. The S&P 500 has lost nearly 9% since early September's record high. That decline was mainly driven by losses in the technology sector. But Goldman Sachs, Wells Fargo and Deutsche Bank are upbeat the US stock market sell-off is mostly over. Goldman Sachs kept its end-of year S&P 500 target to 3,600 by year end.
Is another bubble about to burst? Goldman Sachs said Wall Street's most popular fear gauge is flashing a warning sign not seen since the bursting of the dot-com bubble in 2000. Typically, when the stock market rises, volatility tends to fade. But Goldman said this pattern has been overturned. The S&P 500 and the VIX index have currently hit record peaks in correlation to each other.
On Thursday, Goldman Sachs said the S&P 500 can hit 3,600 if markets price in the bank's "comparatively more optimistic US GDP forecast." The banks analysts say specific market conditions would yield the growth. The economy contracts by only by 5% in 2020. It would have to grow by 6.2% next year. After that real yields will rise sharply to levels of "cyclical optimism" in June 2021.
2020 has been a wild ride for stocks. Business Insider reports that the market continues to face risks stemming from the COVID-19 pandemic. There is also election uncertainty, and the potential for heightened trade tensions with China. BI reports that investors should continue to hold on for the potential of more gains ahead. In a note, investment group LPL raised its year-end S&P 500 fair-value target to a range of 3,450 to 3,500, the note said.
According to Business Insider, JPMorgan expects the S&P 500 to rise another 6% from current levels to a record 3,600 before the year is over. The S&P500's earnings recovery is "ahead of expectation." Tech stocks have done well, boosting the index. The S&P500 will continue to support its recovery while other sectors gain through the second half of the year, they added. JPMorgan expects S&P 500 firms' margins to fully recover from the pandemic by the second half of 2021.
CFRA's Sam Stovall said that the recent S&P 500 pullback may be converted into a "low-level, double-digital correction." According to Business Insider, Stovall said that this will be an opportunity for investors to buy, not "bail." He feels the Fed is likely to keep interest rates low for the next few years. Stovall added that recent S&P 500 sell-off was not surprising. For Stovall, the "extreme" difference between price returns for growth stocks versus value stocks made the market vulnerable.
While the investing gap between black and white Americans is narrowing, it's still significant. What's more, there is no one single reason for discrepancy. In 2015, 67% of black households earning $50,000 or more invested in stocks or mutual funds, versus 86% of similar white households. And according to Business Insider, Duke University researchers say the median black household holds just 10% of the wealth of the median white household.
British newspaper The Guardian analyzed user engagement with six popular anti-vaccination Facebook pages from July to August. According to Business Insider, the number of users engaging with 'anti-vaxxer' content more than tripled during that period, from 12,000 to 42,000. Facebook said the analysis wasn't reflective of the platform as a whole. The social media platform added that it took down 7 million pieces of misinformation related to COVID-19 between April and June.
Vitamin B6 is one a very popular vitamin. Business Insider explored the benefits of this vitamin. Vitamin B6 helps turn food into energy. Vitamin B6 supports heart health. Vitamin B6 promotes healthy brain function. Vitamin B6 may help morning sickness. Vitamin B6 may treat seizures in newborns. Vitamin B6 fosters a healthy immune system .
In early trading on Wednesday, shares of Goldman Sachs Group topped the list of the day's best performing Dow Jones Industrial Average components, trading up 2.1%. Year to date, Goldman Sachs Group has..
Credit: Market News Video Duration: 01:02Published