Goldman Sachs Alerts Investors to Sell Tech Stocks for Better Returns

Thursday, 11 April 2024, 10:06

Goldman Sachs advises investors to consider selling tech stocks like Tesla and Apple due to diminishing returns and shifting market dynamics. The investment banking giant suggests redirecting focus towards energy and Japanese stocks for better profit potential. While trends can change, it's essential for investors to conduct thorough research before making any investment decisions.
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Goldman Sachs Alerts Investors to Sell Tech Stocks for Better Returns

Goldman Sachs Warns: Time to Sell these Stocks for Profit Maximization

Although big-name technology shares have been all the rage in the past months, it seems that the hype is nearing its end, and investors should take their profits while they can and divert their attention elsewhere, at least according to the investment banking giant Goldman Sachs (NYSE: GS).

Magnificent 7 stocks divergence

Indeed, according to her, the problem with tech stocks is their risk-reward profile skewing downward, as evident in the divergence among the Magnificent 7 stocks, that have seen Tesla (NASDAQ: TSLA) drop 30% this year and Apple (NASDAQ: AAPL) struggling as well.

  • Nvidia (NASDAQ: NVDA) has made a remarkable 76% surge year-to-date (YTD), leaving analysts to question whether the company has reached its peak.

Alternatives to tech stocks

Wilson-Elizondo further highlighted her company’s practices regarding tech stocks: "We like taking profits on technology and moving toward other sectors. While we still believe in being long equities and having them in the portfolio, we think that there are some more attractive opportunities to access." Specifically, these other opportunities seem to lie in energy shares and Japan.

Ultimately, Goldman Sachs might prove correct in the long run, but it is important to remember that trends can shift, so doing one’s own research before investing in any asset class is critical.


This article was prepared using information from open sources in accordance with the principles of Ethical Policy. The editorial team is not responsible for absolute accuracy, as it relies on data from the sources referenced.


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