Every company has been bracing for the fiscal cliff in their own ways. Some have been delaying capital expenditures until uncertainty clears up, while others have been dumping cash on their shareholders in the forms of special or accelerated dividends.
Bitcoin (BTC) is the most popular crypto-currency and covers more than 90% of the crypto-currency universe with a market value of $8.09 billion at current prices. Given the potential that can be seen and the latest developments in the Japanese market that led to Mt. Gox declaring it bankrupt and moving out from the country, the vacuum had to be filled. The opportunity was cashed in by former Goldman Sachs (GS) employee, Mr.
By Kurt Brouwer: If you have been reading Fundmastery Blog for a while, it should be no surprise to you that economic growth is slowing. Now, Goldman Sachs (GS) has finally released a report that states the obvious. It’s really a question of how low does it go. Do we just muddle along with slow growth or do we sink into another recession?
Goldman Sachs said U.S. oil prices need to trade near $40 a barrel in the first half of this year to curb shale investments as it gave up on OPEC cutting output to balance the market.
The bank reduced its forecasts for global benchmark crude prices, predicting inventories will increase over the first half of this year, according to an e-mailed report. Excess storage and tanker capacity suggests the market can run a surplus far longer than it has in the past, said Goldman analysts including Jeffrey Currie in New York.
Goldman Sachs has cut its first quarter GDP estimate to -1.9%. The firm had previously expected a Q1 GDP decline of -1.1%. On Twitter, Reuters' Jamie McGeever noted that excluding the 2008-2009 crash, this would be the largest quarterly GDP contraction in 23 years.
Having flip-flopped from forecasting EUR strength for the next 12 months in April (target 1.40), Goldman has rapidly ratcheted down its expectations for the flailing currency to 1.30 previously and now forecasts EURUSD at 1.20 in 12 months. As Goldman notes, "because we believe the dynamics of the Euro have fundamentally changed and because we expect cyclical outperformance of the US, a prolonged period of Euro undervaluation can be expected and this is reflected in our longer-term forecasts." Trade accordingly...
Over the past month there has been a sudden shift in the public's attention to the debt ceiling debate and away from the government shutdown, which since it did not result in the Armageddon many had predicted (same as the sequester) has been promptly forgotten.
As if to rub salt into the wounds of Europe's death by a thousand-downgrades, Goldman Sachs followed up Germany's decision to drastically cut its growth outlook for 2014 (+1.2% from +1.8%) and 2015 (+1.3% from +2.0%) by slashing its forecast for Europe in Q3 to a triple-dip recessionary -0.15% GDP growth. This is dramatically below an "over-optimistic" consensus of +0.35% as incoming data is notably weaker than expected.