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Goldman Sachs has released a report featuring their top 25 tactical trades, dubbing 2024 as "the year of the stock picker." To provide deeper insights into this forecast, Goldman Sachs head of derivatives research John Marshall joins Market Domination.

Marshall highlights a key theme currently dominating the markets: "extremely low correlation between stocks." This correlation, he notes, is nearing an all-time low, creating an intriguing market dynamic. The result is a disparity between the market volatility index (^VIX) — which is at an unusually low level in an election year — and the level of "earnings day moves for single stocks of 4.8%" at a 14-year high.

Explaining the methodology behind Goldman Sachs' top 25 tactical trades list, Marshall emphasizes the role of analysts.

"Analysts have a powerful amount of information in their estimates," he states, pointing out a notable trend: when estimates for a stock are above consensus, that stock tends to rise, and conversely when estimates fall below consensus, the stock in turn declines.

For more expert insight and the latest market action, click here to watch this full episode of Market Domination.

This post was written by Angel Smith