/Goldman Sachs says its time to buy value stocks and sell some tech – CNBC

Goldman Sachs says its time to buy value stocks and sell some tech – CNBC


Traders wear masks as they work on the floor of the New York Stock Exchange as the outbreak of the coronavirus disease (COVID-19) continues New York, May 27, 2020.

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The potential for a Democratic sweep in November and a Covid vaccine means it is time for investors to shift from tech stocks to cyclical plays, Goldman Sachs said in a note Thursday.

The move, a global call from Goldman Chief Global Equity Strategist Peter Oppenheimer, is based on a pattern of short-term reversals into cyclical stocks that has occurred since the financial crisis more than a decade ago. Those situations typically last about four months and result in cyclical stocks outperforming defensive ones and a smaller outperformance for value relative to growth.

These shifts tend to happen during periods of rising bond yields and strong growth, both of which Goldman expects in the near term.

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