Giles Coghlan LLB, Lth, MA
Financial Source
The latest FOMC minutes were perceived to be dovish in an initial market reaction. There was certainly nothing for short-term bulls in terms of tapering timing clues. However, the broad picture remains the case that the Fed is positioning for sooner policy normalization as the economic recovery has been faster than expected. Financials can gain from increasing interest rates, so Goldman Sachs's impressive seasonals are worth checking out.
Between July 9 and July 29, Goldman Sachs's share price has gained in value 12 times over the last 14 years. The largest fall was in 2007 with a -12.34% loss. The biggest gain was in 2009 with an 11.33% profit. The average return has been 3.80%.
Key Trade Risks: If there is a sharp sell-off in US stocks this could initially spill over into the share price on a risk-off move.
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