G Sachs: US Stocks Remain Highly Challenging, Recommends Buying Gold on Dips
Complete. Here is the key summaryGoldman Sachs reports US stocks face high volatility and deleveraging, recommending streamlined portfolios. With speculative gold longs unwound and central banks buying, the firm advises purchasing gold on dips near $4,000. While AI infrastructure remains a dominant theme, unresolved concerns over capital expenditure versus revenue growth persist. Upcoming earnings from Microsoft, Meta, and Amazon will serve as critical tests for the market's ability to demonstrate clear AI-driven revenue growth.
G Sachs issued a report saying that the US stock market is currently experiencing significant internal divergence and high-momentum volatility, with clear signs of market deleveraging, leaving the market highly challenging. The broker believes the core investment strategy for investors should be to “streamline portfolios and focus on high-probability trades”. Meanwhile, speculative long positions in gold have largely been unwound, while central banks around the world have resumed gold purchases. Coupled with solid support for gold prices near USD4,000, investors are advised to buy gold on dips to capture structural buying opportunities.
The broker added that the AI infrastructure investment theme continues to dominate the market, but the issue of surging AI capital expenditure without matching revenue growth remains unresolved. Earnings results this week from Microsoft Corporation (MSFT.US) , Meta Platforms, Inc. (META.US) and Amazon.com, Inc. (AMZN.US) will become the next key test for the stock market. The market needs to see a clear connection between AI investment and revenue growth.(mn/da)(Real-time Streaming US Stocks Quote; Except All OTC quotes are at least 15 minutes delayed.)