Category: Reddit Post

If you’re looking to outperform the stock market in 2025, Goldman Sachs has a strategy for you: take advantage of the imminent boom in M&A activity in corporate America and invest in companies likely to engage in mergers and acquisitions.

When a merger or acquisition (M&A) is announced, the target company’s stock price usually jumps. Over time, the combined company’s stock also tends to rise, as mergers often lead to cost savings and better efficiency, boosting earnings and investor confidence. Here are some publicly traded stocks’ tickers that Goldman Sachs has assigned a high chance of being acquired within the next year: Altimmune (ALT), Blueprint Medicines Corp. (BPMC), BridgeBio Pharma (BBIO), Day One Biopharmaceuticals (DAWN), Insmed Incorporated (INSM), Iovance Biotherapeutics (IOVA), Krystal Biotech (KRYS), Madrigal Pharmaceuticals (MDGL), Maravai Lifesciences Holdings (MRVI), Sarepta Therapeutics (SRPT), TripAdvisor (TRIP). Since 2015, 9% of the bank’s picks have been involved in M&A. Goldman Sachs 2024 M&A Outlook report submitted by /u/FXgram_ [link] [comments]

Burrytracker: Billionaire hedge fund manager Ray Dalio, founder of Bridgewater Associates, just warned that the UK could be heading for a “debt death spiral”. This is in which the UK has to borrow more and more money to service its rising interest costs. Here’s why:

https://preview.redd.it/b3dv8okeceee1.png?width=900&format=png&auto=webp&s=c201e180f1b6298d487bbfc8baeeab8fc7bbdacc The UK’s annual interest payments on debt are already very high – over £100B a year. On top of this, when old debt needs to be renewed, it will be replaced by new debt with higher interest rates because borrowing costs have gone up. This could lead to difficult choices: – borrow more money – cut government spending – raise taxes https://preview.redd.it/mwn17f5iceee1.png?width=900&format=png&auto=webp&s=68bd24d89f1f8d682f7e68ab00c390529303aeb9 The UK is borrowing more money than the market (investors) seem willing to absorb easily. As a result, UK gov bonds (called gilts) have seen a sell-off, making borrowing more expensive. Inflation, weak economic growth, & a falling value of the pound are also don’t help. https://preview.redd.it/95mfl8zkceee1.png?width=900&format=png&auto=webp&s=26ce2906015e6bfedfe0a8cf00bdb48bfb8a9b73 Dalio mentioned that the US is also facing similar risks with its rising debt and borrowing costs. Dalio sees this issue as Trump’s “first big issue” of his second term in office. https://preview.redd.it/z44qqo1oceee1.png?width=900&format=png&auto=webp&s=1312aad20f02d019099af9b62e2d770be54c9710 How to solve this? Well it’s not easy Dalio suggests that both the UK and US need to reduce their deficits (the gap between what they spend and earn) to about 3% of GDP. which we both know we aren’t near https://preview.redd.it/fl0u106rceee1.png?width=900&format=png&auto=webp&s=f4baf3dc5da6938d4a376a521e4f6980f83f206d Dalio says cutting spending or raising taxes would slow down economic growth in the short term, but it would help bring down borrowing costs over time. Interesting enough, Dalio’s Bridgewater is still heavily bullish on America with massive positions in IEMG, GOOGL, & more. https://preview.redd.it/rusmxyqvceee1.png?width=900&format=png&auto=webp&s=e79e4f2944725b227311bcfccdd93d8b5df612ca Dalio stepped stepped down from his CEO role in 2017 and as chairman at the end of 2021, but his intuition about the market and the economy has decades of proven track record. submitted by /u/XGramatik [link] [comments]