Investors should own metals and mining stocks as commodities are the next sector to boom after China's reopening, Goldman Sachs chief equities strategist says
David Kostin, the chief US equity strategist at Goldman Sachs, says investments in the commodities sector may have huge upside in the next year as China's economic reopening accelerates.
Investors should look at parts of the economy that will keep growing, Kostin says, citing sectors of the US stock market that will gain from Beijing's lifting of the country's zero-COVID policy. "How should [a US investor] be positioning a portfolio when there's this positive development that's happening in China yet there's this tension geopolitically between the two countries?" Kostin told"We're looking here at US companies...metal and mining companies that will benefit from the global demand largely driven by China for some of the commodities," he added. He mentioned companies such as Freeport-McMoRan Inc.
Goldman Sachs analysts forecast a 30% increased in the S&P GSCI, an index that broadly measures the performance of the commodities sector, within the next year. The International Monetary Fund forecasts China will become the over the next five years. The country will contribute 22.6% of total growth, while the US will contribute 11.3%, per Bloomberg calculations from data in the IMF's World Economic Outlook earlier this month.
United States Latest News, United States Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Goldman Sachs upgrades this express delivery stock, sees upside of 50%The bank upgraded the express delivery company to buy from neutral and raised its price target on the stock to $42 per share from $37.
Read more »
Goldman Sachs' CEO David Solomon has shares in luxury real estateGoldman Sachs' David Solomon invested in a luxury real-estate developer his bank failed to win business from
Read more »
Goldman Sachs' top M&A banker, Stephan Feldgoise, sees big deals returningInsider tells the global tech, finance, markets, media, healthcare, and strategy stories you want to know.
Read more »
How to invest as markets price in a recession: Goldman SachsGoldman Sachs shares exactly how to invest right now to profit this year — even as uncertainty and a banking crisis hurt economic growth
Read more »
Goldman shareholder criticizes CEO Solomon's leadership at annual meetingA Goldman Sachs Group Inc shareholder criticized its Chairman and CEO David Solomon on Wednesday at the bank's annual meeting and proposed its board appoint an independent chairman.
Read more »
34th Annual Goldman Environmental Prize Ceremony returns to SFThe buzz was back at San Francisco's War Memorial Opera House. The stage was set for the 2023 Goldman Environmental Prize Ceremony.
Read more »