Goldman highlights a seasonal trade that could work really well in the first quarter of 2021

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A simple strategy of buying this year's losers for a trade in the first quarter could work particularly well next year, Goldman Sachs said.

That's because 2020's S&P 500 laggards are having their worst year since 2007, trailing behind the benchmark by 36%, due to the outsized damage caused by the unprecedented pandemic, according to Goldman.

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