The Flinchum File

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The Vampire Squid Speaks

One of the companies that I respect the most but trust the least is Goldman Sachs, which was once famously described as a vampire squid sucking on the face of mankind.  In no particular order, here are some of their latest predictions:

1.  GDP growth will slow to 2.1% this year but accelerating to 2.9% next year.
2.  Unemployment will drop from 7.6% now to 6.9% by the end of next year.
3.  It is time for interest rates to begin rising.
4.  The S&P will end this year at 1625 or up another 4.5%.
5.  Gold will end next year at $1,270 or down another 9%.
6.  Stock markets worldwide will rise over the next 3 years, from 9% in the U.S. to 21% in most of Asia.

It was refreshing to read a market analysis that ignored the circus in Washington.  Their predictions were not hedged on which political party does what.

And, their analysis ignored the “heart attack” factors that worry me.  They didn’t discuss any potential impact from a derivatives collapse or a technological collapse or the “dark pools” . . . as they are on the cutting edge of all three.

Still, except for those ignored risks, it is comforting that they continue to see continued growth in both the economy and the stock market.