Goldman Sachs' new consumer loan initiative is designed to keep the Wall Street giant ahead of the growing number of non-bank lenders making inroads. These firms, like peer-to-peer lenders Prosper and Lending Club, are growing fast. Goldman has some big advantages, though - which make its entry into the consumer loan market undoubtedly a smart move.
- Goldman Plays Defense With Consumer Loan Initiative
- Goldman Sachs Calls for a "Flat" S&P 500
- Goldman Sachs (NYSE: GS) Lines Up Its Next Victim: Ecuador
- Goldman Sachs Says Oil Prices Will Soar to $130 in 12 Months ... We Told You That Weeks Ago
Goldman's recent forecast calls for basically no gains on the S&P 500 over the next 12 months. That's got some investors spooked and looking for the exits.
Unbowed by fines and new regulations, Goldman Sachs (NYSE: GS) has simply looked elsewhere for fresh victims.
In a deal that barely registered with the mainstream media, Ecuador's central bank agreed earlier this week to swap half of its gold reserves - worth $580 million - with Goldman in exchange for liquid assets.
The Ecuadorian central bank thinks it's going to earn $16 million to $20 million in profit over the three-year duration of the deal.
The fact that oil prices will soar wasn't a surprise to readers of Private Briefing - we made a similar prediction to the charter subscribers of our new premium investment-advisory service six weeks ago.
Furthermore, we showed subscribers how to profit.
Goldman analysts really believe that oil prices will soar: From Monday's closing prices ($110.30 for Brent and $86.92 for WTI), the heavyweight investment bank's 12-month target prices for oil would represent an 18% gain for the London-traded crude and a 46% gain for its U.S.-traded counterpart.
Worries that the U.S. malaise and Eurozone debt crises would sap global demand have caused oil prices to fall from higher levels back in the spring. In its forecast, Goldman echoed some of the same points that we have made repeatedly to Private Briefing readers since it debuted back on Aug. 11 - namely that demand in China, India and other emerging markets would compensate for weak growth in the developed economies.
The bottom line: There's little doubt oil prices will soar. That makes oil-related stocks - and energy investments in general - "must have" portfolio holdings.
The only question is: How do you play it?
Here at Money Morning, and also in Private Briefing, our experts have said this time and again: The time to make energy-related investments is when energy prices are low. Although Private Briefing has been around for just a bit more than a month, subscribers who have followed our energy-related recommendations have already logged some nice returns of as much as 18%.
And there's plenty of upside to come.
Some of the energy-related columns that we've already published include: