4 key stock market trends retail investors should focus on, according to Goldman's international asset management chief

4 key stock market trends retail investors should focus on, according to Goldman's international asset management chief
Genomics is one emerging area of focus for Goldman's retail investing clients.Brendan McDermid/Reuters
  • Goldman's international asset management CEO broke down four key themes retail investors should look out for.
  • He sees opportunities in ESG, healthcare, emerging technology, and companies focused on millennial lifestyles.

The pandemic has accelerated a number of trends in the stock market that retail investors should keep an eye out for, Goldman's Fadi Abuali said in a recent in-house interview.

As the CEO of Goldman Sachs Asset Management International, Abuali oversees work with both large institutional investor clients and third party banks who are wholesalers to retail investors.
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Here are four megatrends Goldman Sachs Asset Management is focused on in the retail investing space:
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Thinking like a Millennial

How the largest generation in mankind's history saves their money, spends their money, and uses their time is a major area of focus for Goldman, Abuali said.

"They're tech enabled. They prefer healthy lifestyles. Focus on sustainable living. They also prefer experiences over things," said Abuali, who suggests investors seek out companies that will benefit from millennials' lifestyle choices.

The Green Revolution

ESG investing is also a major area of focus for Abuali, particularly because many COVID-related fiscal packages in economies across the globe include funding for renewable power, electric vehicles, and grid infrastructure.
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Abuali said companies that invest in automation efficiencies, renewables, sustainable transportation, recycling, packaging, and plant-based proteins will "generate meaningful alpha opportunities" for Goldman and their clients.

Emerging Technology While technology was an attractive area of the market through the COVID-19 crisis, the demand for working online and transacting remotely won't die down after the pandemic, Abuali said.
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He said investors should seek out companies that involve cybersecurity, software as a service, cloud platforms, and data centers. These will all be "big beneficiaries" of the continued trend of working from home.

Healthcare

Abuali also sees key opportunities in the healthcare industry as a result of the coordination between the private sector and public sector during the pandemic.

"..With greater regulatory comfort and better access to capital, we expect to see the emergence of many new solutions for challenging diseases," said the CEO. "And so, genomics, gene sequencing, gene editing, gene therapy, and concerning supply side manufacturing opportunities will present some terrific investment opportunities for us."
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