Category Archives: Uncategorized

3 Strong Buy Goldman Sachs Mutual Funds

With more than $1 trillion assets under management, Goldman Sachs Asset Management (GSAM) prides itself in having more than 2,000 professionals across 33 offices worldwide, since its inception in 1869. GSAM offers financial services including investment and advisory solutions along with risk management expertise to institutional and individual investors throughout the globe. With its global multi-product platform, this renowned financial management company offers its clients innovative investment solutions that come. Below we share with you three top-rated Goldman Sachs mutual funds. Each has earned a Zacks Mutual Fund Rank #1 (Strong Buy) and is expected to outperform its peers in the future. Goldman Sachs Global Income A (MUTF: GSGIX ) seeks total return. GSGIX invests a large chunk of its assets in fixed income securities issued throughout the globe. The fund may also invest in forward contracts and swap contracts. Goldman Sachs Global Income A is a non-diversified fund that returned 0.9% over the past four weeks. As of Dec. 2015, GSGIX held 1,463 issues with 9.03% of its assets invested in Ginnie Mae Jumbos TBA 4% 2045-12-01. Goldman Sachs Balanced Strategy Services (MUTF: GIPSX ) invests around half of its assets in underlying funds, which in turn allocate their assets in fixed income securities. GIPSX invests about 35% of its assets in equity funds and around 15% in dynamic funds. Goldman Sachs Balanced Strategy Services returned 3.5% over the past four weeks. GIPSX has an expense ratio of 0.69% as compared to the category average of 1.07%. Goldman Sachs Growth & Income Strategy A (MUTF: GOIAX ) seeks capital growth over the long run. GOIAX allocates nearly 55% in underlying funds that focus on acquiring equity securities. The fund also invests around 30% of its assets in fixed income funds. About 15% of its assets are allocated in underlying dynamic funds. Goldman Sachs Growth & Income Strategy A returned 4.8% over the past four weeks. William Fallon is one of the fund managers of GOIAX since 2007. Original Post

Heavy Construction, Automakers Among 10 Groups Up 20% in Four Weeks

The market has had a nice five-week run. So have oil prices. The S&P 500 on Tuesday traded as high as 13.6% above its Feb. 11 low of 1810.10 and back on positive ground for the year. West Texas Intermediate crude was 53% above its February low — its best move since a nine-month, 62% climb to near $115 a barrel in 2010-11. That combination had, on Tuesday, driven 10 industry groups to gains of more than 20% over the past four weeks. Three of those groups were oil-related: International Exploration and Production, U.S. E&P, and Field Services. But the biggest gains did not come from oil. At the top of the list, Metal Products-Distributors had hammered out a 45% gain over the past four weeks. The group is up 73% from a January low, although still 45% below its high mark set in April 2014. Olympic Steel ( ZEUS ) and Norway’s Norsk Hydro ( NHYDY ) are a few of the names that have been around for decades. The only stock in the group with a Composite Rating from IBD above 90 is the relatively newer  Park-Ohio Holdings ( PKOH ), which trades a far-too-thin 51,000 shares a day. The next biggest gain — a 30% rise — comes from the automakers group. No surprise that the star here is Tesla Motors ( TSLA ). Tesla put in a 70% advance off its Feb. 9 low of 141.05, retaking support at both its 10- and 40-week moving averages.  The stock’s chart is volatile and sloppy, but arguably is presenting a deep cup base with a 243.73 buy point. This setup comes just ahead of Tesla’s release of its mass market Model 3 , slated for late next week. India’s Tata Motors ( TTM ) is also below a cup-base buy point. But, while analysts expect Tesla’s EPS to rebound sharply this year and next, consensus views see Tata’s earnings losing ground again this year (down 44% to $1.97 a share) before a projected 199% rebound in 2017. Steel producers and specialty steel makers took two of the top five gains among industries. Big moves by specialty steel heavyweights Carpenter ( CRS ) and Allegheny ( ATI ) helped power the group’s 29% advance. But the fundamentals of both stocks have much work to do before making the leadership grade. On the strictly steel products side, Nucor ( NUE ) and Steel Dynamics ( STLD ) are basing. Both are still fundamentally weak, although Steel Dynamics’ EPS are forecast to rebound 78% this year and 29% in 2017. In the Building-Heavy Construction group, big-bore builders Fluor ( FLR ) and Aecom Technology ( ACM ) helped drive the advance. Thinly traded Granite Construction ( GVA ) broke out of a cup-with-handle base at 44.93 on Tuesday. Analyst consensus projects that the road and highway builder’s EPS will jump 31% this year and 35% in 2017. Metal ore miners swept up 23% in the past four weeks. A sharp rebound in iron ore prices, sparked by pledges of reduction in China’s steel industry production, fueled advances by both large and small players in the group. But few in the industry see conditions truly improving until late this year, or early in 2017.    

Rotten Apple: Donald Trump Would Hike iPhone Cost By At Least $50

After basking in his primary victories on Tuesday night, Donald Trump went straight into talking about Apple ( APPL ). “We will some day in the not too distant future — if I win, otherwise it’s not going to happen, I have to be honest with you — but Apple and all of these great companies will be making their product in the United States, not in China, Vietnam … and we’re not going to be losing our companies.” It may seem far-fetched that Apple would bring its iPhone assembly to the U.S., as Trump has been promising, but some tech analysts have been doing some back-of-the-envelope calculations to see what it would take. It would probably take a massive tariff on U.S. imports from China of the sort that Trump has contemplated to get Apple to even take the idea seriously, given the massive undertaking that it would involve. Even then, Apple would be in a no-win situation, seeing its production costs surge, facing import tariffs on components that it mostly sources from other countries, and getting caught in the middle of a trade war that would surely devastate its sales in China. Citing estimates by electronics repair specialist iFixit and telecom research firm IHS Technology, online technology publication Motherboard reported that building the iPhone 6S in the U.S. would add $50 , or 21%, to the $236 production cost. Much of the rise is due to wage differentials — assuming that the jobs would be relatively low-paying if they came to the U.S. Business Insider reported that Apple iPhone assemblers at one plant make $1.82 an hour . Another analysis, from AppleInsider, finds that moving production to the U.S. would raise overhead by 35%  — even if the jobs paid minimum wage and robots replaced some of the labor. If imports of components faced large tariffs, costs would have to rise much more. Shifting iPhone assembly to the U.S. would have to be done a little at a time, given the massive effort involved to hire, train and ramp up production. It’s hard to envision how it could happen smoothly in the middle of a trade war. Trump has previously implied that his policy positions are like the opening bid in a negotiation, but this opening bid looks like campaign fluff.