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

Markets are pricing steady growth, not a boom. The gap between cyclicals and defensives points to about 2.1% U.S. real GDP growth, right in line with Goldman Sachs’ 2.2% 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