The broad conditions for equity buyers remain in place. Easy central bank monetary policy and broad fiscal stimulus mean conditions are suitable for further equity gains.

Will Goldman Sachs move higher in keeping with its very strong seasonal pattern this year? Over the last 10 years, Goldman Sachs has gained in value nine times between June 26 and July 28. The largest gain was in 2016 with a 15.07% profit. Financial activity has been elevated during lockdowns with high levels of volatility typically positive for the financial sector, Will this be enough to keep Goldman Sachs’s strong seasonal pattern going?

Major Trade Risks:

  • The main risk to this trade is from any risk-off tones which will weigh on equity prices.
  • A fast rise in US inflation could result in bond tapering which would potentially weaken Goldman Sachs’ share price.