S&P 500 annual returns have exceeded 20% over the past two years, continuing their long run of outperformance since the trough of the global financial crisis (GFC). Inevitably, investors may now wonder: Is it time to trim back exposure to US equities? Goldman Sachs’ Wealth Management Investment Strategy Group (ISG) says the answer is a “resounding no.” ISG has recommended overweighting US stocks since the trough of…

   Financial markets have whipsawed amid tariff negotiations between the US and its major trade partners. If the US implements sustained taxes on exports similar to those that have recently been proposed, it would likely cut S&P 500 Index earnings per share by 2-3%, according to Goldman Sachs Research. Beyond the additional 10% tariff on imports from China, the Trump administration has proposed, and since delayed, a 25%…

   The S&P 500 may offer a good opportunity for active stock pickers, as company-specific factors take precedence over macro trends in driving returns. The opportunity for active investing comes as Goldman Sachs Research predicts the S&P 500 Index will climb some 6% this year. S&P 500 return dispersion last year registered one of the highest levels on record, meaning there was a considerable gap between the best…