- With volatility in equity indices weakening volatility, it's becoming increasingly important to identify companies that can withstand turbulence.
- Goldman Sachs has selected 14 companies sharing the same strength.
The stock market volatility is back By and large, and therefore also for investors who are ready to do their homework.
This last part is an important qualification. The benchmark S & P 500 is about 80% against the Cboe Volatility Index, often referred to as the equity market's fear-measuring instrument.
Fortunately, Goldman Sachs is here to help you make informed stockpicking decisions that excel in turbulent times. In this case, this means choosing companies that expect strong growth in the form of a return on equity that is defined differently than the amount of corporate profit returned as a percentage of equity.
According to Goldman's forecast, the ROE will rise to 17.6% this year, the highest level since 2007 – and the new tax law. And while the company recognizes that US equity valuations are historically high, it is argued that rising equity returns will keep them in check and prevent price action from being overused.
Without further ado, here are 14 stocks from seven industries Goldman says will generate the highest ROE growth this year: