As stock picking gets harder, Goldman Sachs says some names that move on micro events and company news offer the best opportunity for investors willing to take risk.
A stock market at all-time highs paired with falling volatility creates "a more challenging stock-picking environment," Goldman chief U.S. equity strategist David Kostin told clients.
With key macro events such as the 2020 election and the $1.9 trillion fiscal stimulus package in the past, micro events like tax reform, infrastructure spending and pricing power should influence stock movement. The firm said names that also move on company-specific news could provide the best opportunity for stock pickers who can afford the risk.
Goldman made a list of stocks that react to micro and company-specific news and assigned them a so-called dispersion score.
