Goldman Sachs digs for "alpha" at the end of the year: Focus on these three sectors as the U.S. job market slows

As the end of summer approaches, investors are seeking clues about the year-end market. Analysts at Goldman Sachs believe that investors should focus on three key areas. They believe that alternative asset management companies and companies with a large amount of floating rate debt have growth potential. As the summer comes to an end, the U.S. labor market is slowing, uncertainty remains about tariffs, and the continuous rise of the U.S. stock market has raised concerns about the formation of a bubble. In this context, Goldman Sachs analysts provide some advice for investors approaching the year-end. Goldman Sachs recommends focusing on three areas in the market In a report on September 5th, Goldman Sachs outlined its U.S. stock investment strategy by the end of 2025 and advised investors to focus on three areas. First of all, analysts at Goldman Sachs recommend investors consider investing in stocks of alternative asset management companies. According to Goldman Sachs analyst David Kostin, this area may be attractive as these companies' valuations have not rebounded to post-election highs like bank companies. Kostin stated that Goldman Sachs expects stocks in this sector to benefit from the growth in capital market activities and overall economic recovery, as well as the expected relaxation of financial industry regulations. He pointed out that the volume of stock issuances is increasing, with a year-on-year growth of 23%. Secondly, analysts believe that stocks of companies with a large amount of floating rate debt have significant investment potential. They pointed out that the upcoming interest rate cuts may alleviate pressure on balance sheets and increase profitability. The report stated: "Since early August, stocks with a significant component of floating rate bonds have risen by 13%, and the Fed's policy has become more accommodative." The bank also noted that these stocks are likely to receive further benefit from the "Big and Beautiful Bill," which allows for a greater deduction of interest from taxes. Thirdly, Goldman Sachs analysts also have a positive outlook on gold mining stocks. They pointed out that the price of gold has been steadily rising in recent months, with spot gold up 37% so far this year. The analyst team stated: "Our commodity strategist predicts that by 2026, the price of gold will rise by 14% due to strong demand from central banks and exchange-traded funds (ETFs)." They also stated that they expect gold mining stocks to rise with the same upward momentum. In August, analysts at Goldman Sachs stated that the price movement of gold is more similar to Manhattan's real estate market than other major commodities like oil.