The fight over a minimum wage hike currently being waged across the U.S. will create winners and lowers as well as a potential relative value trade. A Goldman Sachs report notes that, with interest in the issue building, there is a formula to determine what stocks might benefit from a boost in the minimum wage. Even before a federally mandated minimum wage, wages are rising around the world As if perhaps identifying a strong and persistent trend, Goldman equity analysts Matthew Fassler, Stephen Tanal, Karen Holthouse, Taposh Bari and Lindsay Crucker Mann note wages are going up around the country…
Goldman Claims Formula to Determine When Minimum Wage Hike Hurts or Helps Certain Stocks
Mark Melin
Mark Melin is an alternative investment practitioner whose specialty is recognizing the impact of beta market environment on a technical trading strategy. A portfolio and industry consultant, wrote or edited three books including High Performance Managed Futures (Wiley 2010) and The Chicago Board of Trade’s Handbook of Futures and Options (McGraw-Hill 2008) and taught a course at Northwestern University's executive education program.