Goldman Sachs has created two new baskets of stocks to help its clients trade a major global economic bounce back from the coronavirus pandemic.
The Wall Street bank estimates global growth of 6.7% in 2021, "well above" consensus in the U.S., while in Europe and emerging markets the bank said the pace of economic growth and improved health "is underestimated."
Its stock baskets — Global Cyclicals and Global Defensives — are designed to help investors select stocks that are riskier as well as those that can protect their portfolios. Cyclical stocks tend to do well when consumer discretionary spending is on an upward trend, while defensives typically provide consistent returns regardless of market conditions.
Goldman's analysts led by Guillaume Jaisson included Tesla in their Global Cyclicals basket, among other automakers, in a research note published Thursday.
Here are 10 stocks from each of the baskets: