Stock investors should avoid companies with greater exposure to wage inflation, with margins a key differential for 2022 after active fund managers missed out on outperformance opportunities last year, according to Goldman Sachs Group Inc.
With economic growth slowing, many companies will see limited sales gains, so the ability for firms to navigate inflation and interest rates will be crucial, Goldman strategists led by David Kostin wrote in a note Sunday. The strategists added that typical stock returns were becoming less influenced by macro factors.
