The rise of passive ownership across the S&P 500 and its impact on company valuation and performance

Goldman Sachs

Research

37 Pages

In the first 5 pages, Goldman Sachs assesses the impact of passive investing on the stock market and says, “for stock pickers the share of passive ownership of a company is much less important for valuation multiples than fundamental attributes.”

Key Takeaways

Tax policy diverges: Democrats may propose higher corporate and top-bracket taxes, while Republicans likely pursue extensions of current cuts
Sector impacts vary: Energy, healthcare, and defense are among sectors where party outcomes could influence earnings and valuations
Macro policy lens: Election outcomes may shape deficit trends, inflation pressures, and the Fed’s policy posture through fiscal spillovers
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