There may be little upside left in this stock rally, says Goldman Sachs. Here's where it advises investors to put their money now.

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The quarter has been a bumpy one for markets, but the gains seen thus far may be the best of what the year has to offer. Here's a strategy from Goldman Sachs.

After seven straight quarterly wins, the S&P 500 is about to log a 3% loss in the first quarter. The last losing quarter was a COVID-fueled 20% slump in March 2020,

But a 5% gain for March will make for the best month since October, and the index remains just 4% off its Jan. 4 highs. “We continue to see this as a ‘fat and flat’ market environment — a wider trading range and lower returns than in the post financial crisis era. There remains risks of corrections in an environment in which equities continue to outperform bonds,” the team said.

Also important — building a wall around portfolios using broad diversification across assets, geographies and sectors, i.e. real estate and commodities. Hedging is also important, and with the VIX volatility index VIX below 20, S&P 500 puts — an option that offers the right to sell at a specific price by a specific date — are an attractive hedge. Defensive value and high-dividend yield stocks are another area they like.

Apple AAPL and Facebook parent Meta Platforms FB reportedly gave customer data to hackers posing as law-enforcement officials, Bloomberg reported, citing sources. Elsewhere, the newswire reported that Apple is testing memory chips from a Chinese company to power its iPhones. The Biden administration will now allow a new gender marker on passports, to promote transgender rights.

 

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Index funds and don’t touch them. You are far better of not looking at your returns ever. No one can predict what will happen in the market. Ignore the noise ( Market Watch).

3 weeks ago they were saying 35% chance of recession 😌

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