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

Markets are tilting toward a steady growth outlook. Relative returns between cyclical and defensive stocks imply about 1.9% U.S. real GDP growth, broadly 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