Why has Goldman Sachs stock performed so well over past 1 year?
Aug 14, 2021
7 Comments
GS stock was pretty much constant for the last decade but suddenly it has doubled over past one year, outperforming all FAANG stocks and a lot other bigger companies. Does anyone know why or how? I see their performance have been very strong over past year but their performance is usually strong, so why the sudden huge jump in stock price?
#investing #goldmansachs #faang
comments
Valuation of stocks is not easy to explained and no one really knows why market fluctuates the way it does. Don't believe in those auto generated articles "stock drops because of X". Next day, "stock rallys because of the same X".
Even though it's complicated, inflation does contribute to the current valuation. It's not just banks, most stocks are up during the pandemic. One can argue the market is also speculating a sooner than anticipated interest rate hike to combat higher than usual inflation. This is good for banks
In the last couple of years, they made tons of money from the consumer business while decreasing compensation for their employees. Sad employees = happy stock holders π