April 17, 2010

Goldman Sachs (GS): History And Statistics Suggest A Rebound In Price Next Week

Bespoke Investment Group studied the worst one-day declines for Goldman Sachs (GS) stocks and here are their conclusions:

"Friday was the fifth worst day in Goldman Sachs' (GS) history as a publicly traded company. Its worst one-day decline came on January 20th, 2009 when it fell 18.96%. Below we highlight all one-day declines of 10% or more for Goldman since it went public in 1999. As shown, the average return on the day after 10%+ declines has been 3.06%. But the day after has been positive just 50% of the time. The stock has done extremely well in the week following these big down days. Of the twelve prior 10%+ one-day declines for GS, the stock has gone higher over the next week 10 times for an average gain of 11.37%." in Bespoke

History and statistics suggest a rebound in Goldman Sachs (GS) shares next week.

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