A recent Marketwatch article, titled “Gloomy
Goldman offers 20 ‘safety’ stocks with valuations below the previous 2 bear
markets,” listed 20 “safety stocks” that Goldman Sachs (GS) chief U.S. equity
strategist David Kostin proposed for a potential downturn. According to Kostin,
the companies are not only large and have strong balance sheets, they are also
cheap:
'…[their] price/earnings multiple after a 20% haircut to expected 2023 earnings is below the forward p/e at the bottom of either or both of the March 2009 and March 2020 bear markets.
“Importantly, given the different real interest rate environments, the highlighted stocks are more attractively valued today on a yield gap basis relative to the rest of the index than they were in either 2009 or 2020,” said Kostin and the team.'
A stock that is cheaper than in 2009 and/or 2020 does sound cheap! In that context, I looked at the list...(Read More)
