Indexed Return of Cyclicals vs. Defensives and Consensus Forward 4-Quarter U.S. GDP Growth

Markets are pricing in steady growth, not a boom. The gap between cyclicals and defensives suggests U.S. real GDP growth of 1.9%, in line with Goldman Sachs’ forward 4Q GDP growth forecast

Image: Goldman Sachs Global Investment Research

Indexed Return of Cyclicals vs. Defensives and Consensus Forward 4-Quarter U.S. GDP Growth