Goldman : Buy Wells Fargo & Bank of America.
In my “picked” post published on Fri, 06 Jun 2025, I have shared the two Mag 7 stocks that Goldman Sachs analyst have recommended to dispose as part of their Top 10 Most Underweight stocks.
Click here ! for full details on these ‘underweighted’ stocks.
Like it or not, there seems to be some “fluke-truth” in the recommendation, judging by Thursday turn of events; as the two most “powerful” men (Turmp & Musk) clashed big time. (see below)
As of Thu, 05 Jun 2025
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AAPL ended Thursday lower by -1.08% at $200.63 per share.
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NVDA ended Thursday lower by -1.36% at $139.99 per share.
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Based on futures index, AAPL is poised to recover grounds marginally, while NVDA languishes.
Despite recent turbulence, Magnificent 7 still make up a lion’s share of S&P 500 market value.
Like the 2 sides of a coin, there is also a flip side to Goldman Sachs recommendation.
That is Overweight stocks. Below please find what GS is recommending.
Overweight Stocks.
While scaling back on Magnificent Seven stocks, Goldman analysts also found that many fund managers have overweight positions on (a) big banks and (b) financial companies, reminiscent of Buffett’s investment style.
List of Overweight stocks.
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$Wells Fargo(WFC)$ (#1): the most overweight stock. It used to be a top Berkshire holding.
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$Bank of America(BAC)$ (#2): second most overweight stock.
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$Visa(V)$ & Mastercard (MA) made it to the Top 10 overweight list too. They are still in Berkshire’s holdings and within top 15 in its portfolio of stocks.
Finance Sector.
Financials have been a good bet in 2025 (so far), rising on the hopes of more interest-rate cuts from the Fed.
Recent increase in (a) merger activity and (b) prospect of deregulation from the Trump administration helped to prop up financial stocks.
As of 05 Jun 2025
$Financial Select Sector SPDR Fund(XLF)$ exchange-traded fund is up +5.06% YTD (see above).
Healthcare, Still Going Strong?
Fund managers also have outsize positions in several healthcare stocks, most notably device maker Medtronic and insurer Cigna.
Those bets have paid off so far. (see below)
As of 05 Jun 2025
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YTD, Medtronic is marginally higher at +8.45% YTD.
As of 05 Jun 2025
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Meanwhile insurer Cigna fared better, trending higher at +13.31% YTD.
However, not all healthcare stocks are winners.
As of 09 Jun 2025
Case in point - fund managers had overweight positions in $UnitedHealth(UNH)$ .
However, the insurer has plunged in recent weeks due to (i) Earnings concerns, (ii) Management shake-up, and (iii) a litany of other issues.
Actually, as recent as early April 2025, UNH’s was still up nearly +20%, making it the top performer in the Dow index. (see above)
As fate had it, it’s now down -39.90% YTD and had become Dow’s biggest loser.
It just goes to show how quickly momentum can shift on Wall Street.
Active fund managers need to remain nimble as well.
Personal Viewpoints : (mine only)
While Goldman Sachs has been spot-on with Funds Managers’ list of favourite underweight and overweight stocks, by the time they are published - has the ship already sailed?
Did retail investors (like us) “missed the boat”? I think the answer is “Yes” and “No”.
It would have been a resounding “Yes”, had things remained calm, with the White House calling the shots for all reciprocal tariffs countries expected to submit their proposals to US and closed the loop.
However, with the bromance between Trump-Musk descending (see above), back to July 2022 level, when Musk wrote (in Twitter) and called for Trump to sail into the sunset.
This domestic quarrel between the world’s two most egotistical men - may just possibly set up the right buy-in opportunity.
Jack be nimble, Jack be quick. Here’s 50 cents for the quick picks ! What do you think ?
Remember to check out my Friday & Monday posts also. See below & click. Help to Repost so that more will come to know ok. Thanks.
Must Read: Click on below titles to access. Repost to share, Like as encouragement ok. Thanks.
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Palantir’s Week of Ups and Downs. Still a Buy ? Tue, 10 June. Ideal post.
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CPI Inflation drives US Markets this week ? Mon, 09 June. Ideal post.
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Celebrate weak US Job Reports ? Dun think so ! Mon, 09 June Ideal post.
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Bessent vs Dimon: US Economy / Market Showdown ! Mon, 09 June Picked post.
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Do you think buying WFC & BAC is a smart move ’? Banks give good dividends though !
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Do you think it is short-sighted not to buy into UNH while its weak & vulnerable?
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Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.
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