economy Markets

Goldman Says You’re Probably Too Obsessed With American Manufacturing

Keep it in perspective.

Keep it in perspective.
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6 comments on “Goldman Says You’re Probably Too Obsessed With American Manufacturing

  1. This also speaks to the effects of the trade war and the tariff policy that Goldman does not talk about…and it is possible to draw a different conclusion from that potential analysis….

  2. Cracklesnapper

    I do enjoy the likes of Goldman trying to reassure all the lemmings lest they pull their money from the casino. I look forward to future notes from GS reassuring us not to worry about trucking, shipping, retail, real estate, etc. No, just keep giving GS your money for equity trades. Don’t worry about a thing.

    • this is silly. Goldman doesn’t care whether average Joe buys or sells. these conspiracy theories are ridiculous and always have been. save it for a site where that kind of nonsense is welcome, cause it ain’t here.

      • More to the point: do you want to refute the actual analysis? does your model of how the manufacturing sector impacts the variability of GDP and NFP spit out different results? if so, please share it with everybody so we can learn for your research.

        • Not sure about that last comment H….. I think Goldman is talking about a time frame where Manufacturing was in decline and their conclusions on that basis are correct… The future under Trump could reverse some of this process if for instance trade wars and tariff issues are not resolved successfully. This would tend to reverse the manufacturing impacts on GDP to a (small degree) or more ..It’s in the future not the past and we should be learning not to discount anything in these times..

  3. Suppose manufacturing is only 10% of GDP (don’t have exact # at hand, sorry). 10% impact on mfg is roughly 1% hit on GDP.

    Suppose mfg is 30% of SP500 revenue. 10% short term impact on rev is very roughly a 40% impact on EBIT, at operating leverage and var/fixed cost of a typical mfg co. Could be about 12% hit to SP500 EBIT.

    That’s a significant enough impact to worry about. Plus the knock on effects.

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