Over the past three years no company has been more hated than Goldman Sachs (NYSE: GS). If Ben Bernanke is considered the "White Knight" in the tale of the Great Recession, then Goldman Sachs has got to be the "Evil Wizard" for sure.
Investors blame a lot of different contributing factors for the crisis that occurred in 2008. But Goldman Sachs got an especially bad reputation during that time, mainly because it was involved in selling many of the financial instruments that helped caused the mess.
Goldman also took our hard earned tax dollars (given to them in the U.S. bank bailouts of 2008/2009), and instead of fixing the debt debacle, they paid senior management (the same ones who made the mistakes) huge multimillion dollar bonuses.
As Goldman, and its executive team, took tax payer dollars at virtually no cost, the company’s stock soared – going from lows of $58 to as high as $190 in 2009. But curiously, shares of Goldman Sachs topped out in 2009 while, as we know, many other stocks rolled higher into 2010 and 2011.
In fact, shares of Goldman Sachs were trapped in a wide range of $135 to $190 for the better part of two years. Recent events in Europe, as well as a downgrade of the United States credit rating, were however able to take shares of Goldman down below its $135 support. And with that breakdown now behind us, shares of Goldman Sachs could be headed much lower, perhaps back down to the financial crisis lows of 2009.
Are shares of Goldman Sachs headed lower? And are they a good buy at a certain price?
Editor, Trademaster Daily Stock Alerts