Demand for U. S. stocks is expected to increase in 2021, driven by a combination of foreign investors, U. S. corporations, and households, Goldman Sachs said on a note Thursday.
“The richest 1% will drive a call to family action next year,” Goldman said, pointing to a three-decade trend that disagrees with the poorest 99% percent buying behavior in families.
The richest 1% bought $1. 5 trillion in shares over more than 30 years, while the poorest 99% were net distributors of $800 billion in shares, according to the note.
“Periods of accelerated economic expansion have coincided with more equitable allocations,” Goldman said.
Foreign investors will be the largest buyers of U. S. stocks in 2021, which are expected to accumulate more than $350 billion, according to Goldman, as increased demand is likely due to the weakening of the US dollar.
Read more: More than two hundred fund managers pay thousands of dollars to see which shares are on Jim Osman’s procurement list. It stands out 2 that sees twice as much and says there is at least 50% left to fly.
He will be the second-largest U. S. stock client next year, estimated at $300 billion, the note said.
Wealthy families supplement the estimated demand for 2021 for U. S. stocks, with $100 billion in expected purchases through the group. However, a blue wave in November can result in net percentage sales through the richest 1% at the end of the year, as they seek to pay higher taxes under Biden’s administration.
From there, $200 billion is expected in mutual fund outings, $250 billion in ipY for the budget traded on the stock exchange, and $250 billion in pension fund outings, Goldman said.
And while the allocation of 47% of investors to equities is higher than it was two years ago, it still has room for manoeuvre before reaching the most sensitive Internet bubble of 51%, suggesting that equities may also continue to rise.
<< In current terms, the price of equity assets held through the 4 largest types of investors is expected to increase to $8 trillion (30% more than S market capitalization)
Read more: A company’s leading $750 million chief investment manager explains why the bull market will stand independently of the final results of the election, and invents the 12 possible maximum and compelling inventory options that make up its promoted market strategy.