Tom Reese/Paul Rubillo, Dividend.com
Goldman Sachs (GS) economists came out Friday with a rather gloomy recession forecast.
They believe the economy will slow substantially, and see minimal, if any, growth between the middle of 2008 and the middle of 2009. They see the unemployment rate rising to 8% by the end of next year from 6.1% currently. As far as rate cuts go, the economists see the Fed funds rate getting slashed to 1% from 2% now, as a new administration takes office.
The Bottom Line
This is a very interesting take from Goldman Sachs. This call doesn't exactly jibe with their recent reiteration of Oil hitting $150 a barrel. We disagreed with their view of Oil on that recent call, and since July we have been calling for investors to lighten up their energy sector exposure. We do believe the recession call they are making has merit and we will allocating our stock ideas accordingly to what have been seeing.
Be sure to visit our complete recommended list of the Best Dividend Stocks as well as a detailed explanation of our ratings system here.
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