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Goldman Sachs believes U.S. corporate earnings will rebound sharply in 2021 after bottoming this quarter, and the firm came up with different strategies for clients to benefit from the big comeback.
As the coronavirus pandemic brought cost-cutting front and center, Goldman is confident that companies navigating the unprecedented turmoil can see a swift recovery next year with the arrival of a vaccine.
"Rebounding revenues, cost controls, and weak wages will drive above-consensus profit margin rebound in 2021," Ben Snider, Goldman's equity strategist, said in a note. "Even absent any cost controls, a vaccine-driven economic and revenue recovery should lead to an even stronger earnings rebound."