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					April 15, 2011




United States

US Weekly Kickstart
                                                                                                                                                                Portfolio Strategy Research

Our index forecasts, recommended sector weights, and 1Q earnings season calendar
Earnings season kicks into high gear next week when 112 firms representing 33% of S&P 500 market cap will report 1Q results
highlighted by 11 companies in our BRICs sales basket <GSTHBRIC>. We remain pro-cyclical as the core aspects of our positive
outlook remain in place. However, the distribution around our base case has widened since early December following a 9% rally in
the S&P 500 and elevated risk to the US economic outlook from higher oil prices and inflation. Accordingly, we maintain our price
target but shift our sector weights closer to benchmark and adjust our thematic recommendations in favor of international growth.

Performance                                                      Sector views and performance
                                                                                                                                                     David J. Kostin
The S&P 500 fell 1.4% this week. Consumer                        Our recommended sector weightings lost 17 bp
                                                                                                                                                     (212) 902-6781 david.kostin@gs.com
Staples was the best-performing sector (+1.2%)                   this week as Consumer Staples outperformed and                                      Goldman Sachs & Co.
while Energy was the worst-performing sector                     Energy underperformed. Our recommended
(-3.6%). We expect the S&P 500 to rise to 1525 in                sector weightings have generated 2 bp of alpha                                      Stuart Kaiser, CFA
12 months (+16%).                                                YTD.                                                                                (212) 357-6308 stuart.kaiser@gs.com
                                                                                                                                                     Goldman Sachs & Co.

S&P 500 Earnings                                                 US Portfolio Strategy Baskets                                                       Amanda Sneider, CFA
Our top-down EPS forecasts of $96 and $106 for                   Our recommended trades vs. the SPX: BRICs                                           (212) 357-9860 amanda.sneider@gs.com
2011 and 2012 reflect +15% and +11% growth,                      Sales <GSTHBRIC> was initiated, ROE Growth                                          Goldman Sachs & Co.
respectively. Bottom-up consensus forecasts a                    <GSTHGROE> was up 0.3%, and High Sharpe ratio
                                                                                                                                                     Yi Zhang
17% increase in 2011 to $98, and a 14% increase                  <GSTHSHRP> was down 1.2%.                                                           (212) 357-6003 yi.g.zhang@gs.com
in 2012 to $112.                                                                                                                                     Goldman Sachs & Co.
                                                                 Our long Cyclicals <GSSBCYCL> / short
                                                                 Defensives <GSSBDEFS> trade was down 2.7%.
Valuation
Top-down, S&P 500 trades at an NTM P/E of
                                                                 S&P 500 stock performance this week
13.7X. Bottom-up, it trades at an NTM P/E of 13.3X
                                                                 Leaders: SVU, BIIB, TYC, S, and COH
and an LTM P/B of 2.4X.
                                                                 Laggards: THC, AN, DNR, FCX, and AA


The Goldman Sachs Group, Inc. does and seeks to do business with companies covered in its research reports. As a result, investors should be aware that the firm may have a conflict of interest that
could affect the objectivity of this report. Investors should consider this report as only a single factor in making their investment decision. For Reg AC certification, see the end of the text. Other
important disclosures follow the Reg AC certification, or go to www.gs.com/research/hedge.html. Analysts employed by non-US affiliates are not registered/qualified as research analysts with FINRA in
the U.S.



The Goldman Sachs Group, Inc.                                                                                                          Goldman Sachs Global Economics, Commodities and Strategy Research
Goldman Sachs Global Economics, Commodities and Strategy Research                                                                                                                                     1
April 15, 2011                                                                                                                                              United States



Conversations we are having with clients: Our pro-cyclical view and 1Q earnings season
Our discussions with clients this week related to our continued pro-                     attractive valuation are balanced by regulatory overhang, smaller balance
cyclical outlook for US equities. The core aspects of our positive outlook               sheets and a challenging interest rate environment.
for US stocks remain in place. However, the distribution around our base                 Conversations with clients following our change illustrate the mixed
case has widened since early December following a 9% rally in the S&P 500                view of portfolio managers on the Financials sector. Some investors note
and elevated risk to the US economic outlook from higher oil prices and                  the progression of events that has left risk/reward balanced. Others believe
inflation. Accordingly, we have shifted our recommended sector weights                   progress will soon manifest in industry data, including 1Q results, and
closer to benchmark and adjusted our thematic trade recommendations to                   believe we moved too soon. Although it is possible that loan growth data
gain more exposure to growth markets.                                                    will improve, we do not believe the current risk/reward supports a continued
We (1) maintain our S&P 500 year-end 2011 price target of 1500 (+14%); (2)               Overweight in Financials vs. other S&P 500 sectors.
lower our Financials weighting to Neutral from Overweight and reduce the                 Reduce size of Health Care Underweight to 100 bp from 300 bp. We have
size of our Health Care underweight; and (3) recommend buying stocks with                recommended an Underweight position in Health Care since May 2009.
high BRICs sales <GSTHBRIC> and close our Dividend Growth <GSTHDIVG>                     However, negative EPS revisions have stabilized and positive reaction to
and Dual Beta <GSTHBETA> trades.1 We believe these changes are                           acquisition and restructuring may signal a turning point for the sector.
consistent with portfolio risk reduction during periods of uncertainty.                  Government austerity and patent expiry remain notable headwinds.
Our S&P 500 3-, 6-, and 12-month price targets: 1375, 1425, and 1525.                    Themes: (1) Cyclicals; (2) BRICs; (3) ROE growth; (4) Sharpe ratio. We
US Equity Views: New 3-, 6-, and 12-month targets reflect 5%, 8% and 16%                 favor cyclical vs. defensive sectors. Our thematic trade recommendations
returns (April 13, 2011). Our views reflect expectations of sustained US                 emphasize sales exposure to emerging markets, growth in return on equity
economic expansion, moderate inflation, and accommodating monetary                       (ROE), and stocks with high risk-adjusted potential returns (Sharpe Ratio).
policy, but recognize the increased risks of slower growth, inflation, higher            Initiating BRICs sales exposure trade Portfolio Passport: US stocks for a
oil prices, and interest rates. Our DDM-based 12-month target of 1525                    growth market world (April 12, 2011). Rapid emerging market GDP growth
reflects a 16% gain from current levels.                                                 should translate into continued outperformance of US stocks with a high
Our S&P 500 earnings, sales, and margin forecasts have not changed.                      percentage of sales to BRICs regions. We recommend US equity investors
We maintain our S&P 500 EPS estimates of $96 in 2011 and $106 in 2012.                   gain exposure to those markets by buying our BRICs sales basket
Our profit margin forecasts of 8.8% and 9.0% would establish new highs. We               (Bloomberg ticker: <GSTHBRIC>) and selling the S&P 500. The basket
forecast the S&P 500 will post sales growth of 7.9% in 2011 and 7.2% in 2012.            identifies 50 US companies across ten sectors with high sales exposure to
Sectors: Move closer to the benchmark on balanced risk/reward. US                        the BRICs countries and regions. The median stock in the basket derives 76%
Sector Views: Shift sector weights closer to benchmark on balanced risk-                 of its sales from outside the US and 31% of its sales from BRICs regions
reward (April 14, 2011). We reduce the absolute size of our over/under                   compared with 28% and 0% for the S&P 500, respectively.
weight positions given a more balanced risk/reward versus four months ago.               Close our Dual Beta and Dividend Growth trades. We close two thematic
Lower Financials to Neutral from 200 bp Overweight. In early December                    trades: (1) Buy our Dual Beta basket <GSTHBETA> and sell S&P 500. The
2010 we upgraded Financials to Overweight and identified six drivers of                  “investible gap” between the Goldman Sachs Economics and Portfolio
outperformance. Significant progress has been made in those areas, except                Strategy forecasts and consensus has largely narrowed. The basket returned
for loan growth. The sector outperformed through mid-January but has                     19% vs. 10% for the S&P 500; and (2) Buy Dividend Growth <GSTHDIVG>
matched the market since then. We believe potential tailwinds from loan                  and sell S&P 500. The potential for higher interest rates may cause high-
demand growth, credit reserve releases, returning cash to shareholders and               yielding equities to lag. Basket returned 20% vs. 18% for the S&P 500.
                                                                                         Earnings season kicks into high gear next week with the first of three
                                                                                         major earnings weeks. 112 firms representing 33% of S&P 500 market cap
1
  Note: The ability to trade this basket will depend upon market conditions, including   will report 1Q results. Please see pages 5-7 for next week’s earnings
liquidity and borrow constraints at the time of trade.                                   calendar.


Goldman Sachs Global Economics, Commodities and Strategy Research                                                                                                      2
The charts we are watching: Price targets, sector positioning, and thematic trades
Exhibit 1: Goldman Sachs Portfolio Strategy price targets, sector positioning, and thematic trade recommendations, as of April 14, 2011
                                                                         S&P 500 Index Forecasts
  S&P 500 Price Targets                  Current Level                3 Month         6 Month           12 Month
                                             1315                   1375 (+5%)      1425 (+8%)        1525 (+16%)
  S&P 500 EPS estimates                      2009A                    2010A            2011E              2012E
  GS Portfolio Strategy top-down              $57                      $84              $96               $106
   Growth (% year/year)                       15                       47               15                 11
                                                                     Recommended Sector Positioning
                                        Recommended            GS Overweight /      Change from         S&P 500             Total Return          GS Alpha
  S&P 500 Sector                         Positioning           Underweight (a)    Previous Weights      Weight                  YTD                 YTD

  Energy                                                              200 bp             0 bp             13%                  13%                       14 bp
                                          Overweight
  Information Technology                                              200                0                18                    2                        (5)

  Financials                                                             0            (200)               16                    1                         (5)
  Consumer Discretionary                                                 0               0                11                    5                          0
  Industrials                               Neutral                      0               0                11                    7                          0
  Materials                                                              0               0                 4                    2                          0
  Telecom Services                                                       0               0                 3                    5                          0

  Health Care                                                         (100)            200                 11                   7                         (5)
  Utilities                              Underweight                  (100)              0                  3                   2                          3
  Consumer Staples                                                    (200)              0                 11                   5                          0
   S&P 500                                                               0 bp            0 bp             100%                  5%                         2 bp
                                                                     Thematic Trade Recommendations
                                                                                                                     Date
  Our best trade ideas: Portfolio Strategy thematic baskets (b)                                         Initiation             Close                Return
  BUY BRICs Sales Basket (GSTHBRIC); SELL S&P 500
    See Portfolio Passport: US Stocks for a Growth Market World (12-Apr-11)                             12-Apr-11                                            (0.0)%
  BUY ROE Growth Basket (GSTHGROE); SELL S&P 500
    See 2011 Outlook: Easy money, hard market (1-Dec-10)                                                1-Dec-10                                              1.7 %
  BUY Cyclicals Basket (GSSBCYCL); SELL Defensives Basket (GSSBDEFS)
    See 2011 Outlook: Easy money, hard market (1-Dec-10)                                                1-Dec-10                                              3.7 %
  BUY High Sharpe Ratio Basket (GSTHSHRP); SELL S&P 500
    See 2010 Outlook: Cyclical start; defensive finish (7-Dec-09).                                      7-Dec-09                                             20.8 %
  CLOSED: BUY Dual Beta Basket (GSTHBETA); SELL S&P 500
    See 2011 Outlook: Easy money, hard market (1-Dec-10)                                                1-Dec-10             13-Apr-11                        9.3 %
  CLOSED: BUY High Dividend Growth (GSTHDIVG); SELL S&P 500
    See US Equity Views (9-Aug-10)                                                                      9-Aug-10             13-Apr-11                        1.6 %
(a) Sector weightings last rebalanced on 13-Apr-11. (b) US Portfolio Strategy baskets may be found on Bloomberg by typing <GSTH>. The Bloomberg page provides real-time basket performance
and current basket constituents. For access to our baskets on Bloomberg, we ask readers to contact their Goldman Sachs salesperson.

Source: Compustat, FactSet and Goldman Sachs Global ECS Research.



Goldman Sachs Global Economics, Commodities and Strategy Research                                                                                                                        3
April 15, 2011                                                                                                                                                            United States



1Q 2011 Earnings Summary
Exhibit 2: S&P 500 1Q 2011 earnings summary
as of April 14, 2011
                                                                            S&P 500 EQUAL-WEIGHTED
                                                                                   EARNINGS                                           REVENUE                    Return
                                  Number of Companies       Std Dev Surprises (a)         Absolute Surprises (b) Avg 1Q      Std Dev Surprises (a) Avg 1Q        since    P/E
                                Reported Total % of Co's Positive Negative In-Line        Positive    Negative Surprise      Positive   Negative Surprise      28-Feb-11 (NTM)
 Industrials                        3     59     5%         67 %       0%        33 %          67 %        33 %      6%           33 %        0%       2%           1.5 %  17.5
 Consumer Staples                   7     41    17          57         0         43            71           0       11             0         43       (0)           5.1    15.6
 Consumer Discretionary            12     79    15          50         8         42            58          17        1            38          8        2            0.5    17.6
 Financials                         4     82     5          50        25         25            75          25       12           NM         NM       NM            (2.6)   15.2
 Information Technology             8     75    11          50         0         50            75          13        6            57         14        2           (2.0)   16.7
 Materials                          2     30     7            0        0       100           100            0        5             0          0       (3)          (0.2)   15.4
 Energy                             0     41     0         NM        NM        NM             NM          NM       NM            NM         NM       NM            (1.5)   19.4
 Health Care                        0     52     0         NM        NM        NM             NM          NM       NM            NM         NM       NM             3.8    15.2
 Telecom Services                   0       8    0         NM        NM        NM             NM          NM       NM            NM         NM       NM             3.6    22.6
 Utilities                          0     33     0         NM        NM        NM             NM          NM       NM            NM         NM       NM             0.8    13.6
 S&P 500                           36     500    7%         50 %       6%        44 %          69 %        14 %      6%           31 %       16 %      1%           0.3 %  16.5

 S&P 500 ex. Financials             32        418       8%           50 %   3%    47 %         69 %        13 %       5%                                             0.9 %     16.7

 Comparative Data (full earnings season)
                4Q 2010         499          500      100 %          41 %    9%   47 %         71 %        22 %       8%          38 %        15 %       2%
                3Q 2010         500          500      100            45     10    44           74          20         7           35          19         1
                2Q 2010         500          500      100            51      7    42           75          18        11           35          21         1
                1Q 2010         500          500      100            52      7    39           78          15        14           42          11         2

                                                                              S&P 500 CAP-WEIGHTED
                                                                                   EARNINGS                                           REVENUE                    Return
                                   Weight of Companies      Std Dev Surprises (a)         Absolute Surprises (b) Avg 1Q      Std Dev Surprises (a) Avg 1Q        since    P/E
                                Reported Total % of Co's Positive Negative In-Line        Positive    Negative Surprise      Positive   Negative Surprise      28-Feb-11 (NTM)
 Financials                         3       16    18 %      57 %      39 %        4%           61 %        39 %     (7)%         NM %       NM %     NM %          (4.1)%  12.1
 Information Technology             3       18    15        47         0         53            55          44        5            46          2        2           (3.7)   13.1
 Consumer Discretionary             1       11    10        38         5         57            43          30        1            44         25        2           (0.5)   15.4
 Industrials                        0       11     3        31         0         69            31          69        1             9          0        1            0.1    15.4
 Consumer Staples                   1       11     9        19         0         81            47           0        3             0         27        0            4.3    14.8
 Materials                          0        4    12          0        0       100           100            0        4             0          0       (2)          (0.5)   13.9
 Energy                             0       13     0       NM        NM        NM             NM          NM       NM            NM         NM       NM            (2.2)   12.1
 Health Care                        0       11     0       NM        NM        NM             NM          NM       NM            NM         NM       NM             3.5    11.9
 Telecom Services                   0        3     0       NM        NM        NM             NM          NM       NM            NM         NM       NM             5.0    17.4
 Utilities                          0        3     0       NM        NM        NM             NM          NM       NM            NM         NM       NM            (0.1)   12.7
 S&P 500                            8      100     8%       43 %      14 %       44 %          56 %        34 %     (0)%          32 %       10 %      1%          (0.7)%  13.3

 S&P 500 ex. Financials              6         84       7%           35 %   1%    64 %         53 %        32 %       4%                                            (0.1)%     13.6

Note: 1Q earnings include quarters ending in February, March and April. (a) In-Line if reported values are within one standard deviation of consensus estimates two weeks before
reporting date. (b) Positive if greater than consensus estimates two weeks before reporting date.

Source: FactSet, Bloomberg, and Goldman Sachs Global ECS Research.



Goldman Sachs Global Economics, Commodities and Strategy Research                                                                                                                     4
April 15, 2011                                                                                                                                                            United States



1Q 2011 Earnings Calendar (week of April 18, 2011)
Exhibit 3: 1Q 2011 Earnings Calendar
as of April 14, 2011
                                                                                            YTD     Mkt Cap              1Q 2011 EPS                 Consensus 1Q 2011          P/E
           Sector                       Company name                  Ticker    Rating     Return    ($ bil)   GS        Consensus Std. Dev.     YTD Revisions Yr/Yr Growth    (NTM)
Monday, April 18, 2011
         Consumer Discretionary         Gannett Co.                   GCI      NC            (4)%        $3                 $ 0.41      $ 0.01        3%              (18)%       6.5 x
           Energy                       Halliburton Co.               HAL      Buy           13 %       $ 42   $ 0.57       $ 0.58      $ 0.03        (7)%           107 %      16.3 x
           Financials                   Citigroup Inc.                C        Neutral       (6)%      $ 129   $ 0.10       $ 0.09      $ 0.02        (8)%           (40)%      11.1 x
                                        KeyCorp                       KEY      Neutral       (1)           8     0.12         0.14        0.04        31             227        13.1
                                        Zions Bancorp                 ZION     Neutral       (3)           4    (0.13)       (0.18)       0.08       (12)             55         NM
           Health Care                  Eli Lilly & Co.               LLY      Sell           3%        $ 36   $ 1.16       $ 1.17      $ 0.07        3%              (10)%       8.5 x
           Industrials                  Grainger (W.W.) Inc.          GWW      Neutral        3%         $8    $ 1.79       $ 1.79      $ 0.06        4%              30 %      18.0 x
           Information Technology       Texas Instruments             TXN      Not Rated      7%        $ 41                $ 0.58      $ 0.01        2%              12 %      13.3 x
Tuesday, April 19, 2011
         Consumer Discretionary         Omnicom Group                 OMC      Neutral        5%        $ 14   $ 0.58       $ 0.60      $ 0.02        (1)%            15 %      15.2 x
                                        Harley-Davidson               HOG      Neutral       17           10     0.53         0.54        0.04        (9)             86        18.8
           Energy                       Peabody Energy Corp.          BTU      Neutral        3%        $ 18   $ 0.71       $ 0.61      $ 0.06       (46)%            17 %      13.0 x
           Financials                   U.S. Bancorp                  USB      Neutral       (4)%       $ 50   $ 0.53       $ 0.49      $ 0.02         2%              44 %     12.1 x
                                        Bank of New York              BK       Neutral       (1)          37     0.55         0.57        0.02        (4)              (3)      11.9
                                        State Street Corp.            STT      Buy           (2)          23     0.84         0.86        0.03         0               15       12.3
                                        Northern Trust Corp.          NTRS     Neutral       (6)          12     0.64         0.66        0.06       (11)               3       17.2
                                        M&T Bank Corp.                MTB      NC            (1)          10                  1.41        0.06         5               23       13.8
                                        Regions Financial Corp.       RF       Neutral        4            9    (0.07)       (0.10)       0.03       (30)              52        NM
                                        Comerica Inc.                 CMA      Neutral      (10)           7     0.44         0.47        0.05        33              114       19.2
                                        Hudson City Bancorp Inc.      HCBK     NC           (23)           5                 (0.81)       0.59      (463)            (370)       NM
           Health Care                  Johnson & Johnson             JNJ      Neutral       (2)%      $ 164   $ 1.25       $ 1.26      $ 0.05       (3)%             (2)%      12.3 x
                                        Stryker Corp.                 SYK      Neutral       12           20     0.92         0.89        0.01        2               11        16.1
                                        Intuitive Surgical            ISRG     Sell          41           14     2.42         2.49        0.08        6               17        33.2
                                        Forest Laboratories           FRX      Neutral        6           10     1.10         1.07        0.06       11               29         8.0
           Industrials                  CSX Corp.                     CSX      Buy           18 %       $ 28   $ 1.06       $ 1.04      $ 0.05         3%             33 %      15.1 x
                                        PACCAR Inc.                   PCAR     Neutral      (13)          18     0.50         0.49        0.05        (2)            158        20.3
           Information Technology       International Bus. Machines   IBM      Neutral       13 %      $ 201   $ 2.26       $ 2.29      $ 0.05         2%              16 %     12.6 x
                                        Intel Corp.                   INTC     Neutral       (6)         107     0.49         0.46        0.02         5                7        9.7
                                        Yahoo Inc.                    YHOO     Neutral        0           22     0.22         0.16        0.01       (12)             (27)      21.7
                                        Juniper Networks Inc.         JNPR     Buy*           4           21     0.34         0.32        0.01        (5)              19       24.8
                                        Linear Technology Corp.       LLTC     Neutral       (4)           7     0.57         0.56        0.02        (3)              22       13.9

Source: FactSet, Bloomberg, and Goldman Sachs Global ECS Research.




Goldman Sachs Global Economics, Commodities and Strategy Research                                                                                                                      5
April 15, 2011                                                                                                                                                          United States



1Q 2011 Earnings Calendar (week of April 18, 2011)
Exhibit 3 cont'd: 1Q 2011 Earnings Calendar
as of April 14, 2011
                                                                                           YTD     Mkt Cap              1Q 2011 EPS                Consensus 1Q 2011         P/E
           Sector                       Company name                 Ticker    Rating     Return    ($ bil)   GS       Consensus Std. Dev.     YTD Revisions Yr/Yr Growth   (NTM)
Wednesday, April 20, 2011
        Consumer Discretionary          Yum! Brands, Inc             YUM      Neutral        4%        $ 24   $ 0.64      $ 0.64      $ 0.01        (0)%             8%       17.8 x
                                        Marriott Int'l.              MAR      Neutral      (18)          10     0.28        0.27        0.02        (7)             23        24.2
           Consumer Staples             Altria Group, Inc.           MO       Neutral       11 %       $ 56   $ 0.43      $ 0.44      $ 0.01        (1)%             5%       13.2 x
           Energy                       Noble Corp.                  NE       Buy           20 %       $ 11   $ 0.19      $ 0.18      $ 0.05       (69)%            (87)%     19.3 x
           Financials                   Wells Fargo                  WFC      Buy*          (2)%      $ 159   $ 0.69      $ 0.67      $ 0.04         5%             49 %      10.6 x
                                        American Express             AXP      NC             8           48                 0.91        0.06         3              25        12.2
                                        ProLogis                     PLD      Sell          11            9    0.16         0.15        0.01        (1)            NM         24.8
                                        SLM Corporation              SLM      NC            16            8                 0.41        0.02         7               5         8.8
                                        Huntington Bancshares        HBAN     Buy*          (5)           6    0.14         0.12        0.02        25             NM         12.5
                                        People's United Financial    PBCT     NC            (7)           5                 0.12        0.01         2              50        22.5
                                        NASDAQ OMX Group             NDAQ     Not Rated     17            4                 0.60        0.02         7              40        11.4
                                        Marshall & Ilsley Corp.      MI       NC            15            4                (0.18)       0.06       (13)             50         NM
                                        E*Trade Financial Corp.      ETFC     Neutral       (2)           4    0.13         0.12        0.02        58             148        25.3
           Health Care                  Abbott Labs                  ABT      Neutral        8%        $ 79   $ 0.91      $ 0.90      $ 0.01       (11)%              7%      11.1 x
                                        Amgen                        AMGN     Sell          (0)          51     1.27        1.29        0.05        (2)              (1)      10.7
                                        Gilead Sciences              GILD     Neutral       15           33     0.98        0.98        0.03         0               (1)      10.3
                                        St Jude Medical              STJ      Neutral       23           17     0.79        0.78        0.01        (1)               4       15.9
                                        Boston Scientific            BSX      Sell          (6)          11     0.03        0.04        0.02       (61)             (60)      22.3
                                        Edwards Lifesciences         EW       Neutral        4           10     0.43        0.42        0.01        (5)               5       42.8
                                        Quest Diagnostics            DGX      Sell           7            9     0.98        0.99        0.04         2               (1)      13.0
           Industrials                  United Technologies          UTX      Buy            7%        $ 77   $ 1.06      $ 1.06      $ 0.03        (4)%             14 %     15.7 x
                                        Union Pacific                UNP      Neutral        6           48     1.31        1.31        0.03        (3)              24       15.0
                                        Eaton Corp.                  ETN      Buy*           4           18     0.80        0.77        0.09        10               62       13.9
                                        Textron Inc.                 TXT      Buy           11            7     0.15        0.17        0.03       (12)             NM        22.6
           Information Technology       Apple Computer               AAPL     Buy*           3%       $ 306   $ 5.37      $ 5.32      $ 0.26       24 %              60 %     13.9 x
                                        QUALCOMM Inc.                QCOM     Buy*           7           86     0.85        0.80        0.02       19                36       17.4
                                        EMC Corp.                    EMC      Buy*          16           55     0.32        0.31        0.01        2                19       18.0
                                        Amphenol Corp                APH      Neutral       (1)           9     0.71        0.71        0.01        3                29       17.1
                                        Western Digital              WDC      Not Rated     13            9                 0.65        0.06       14               (62)      11.9
                                        F5 Networks Inc.             FFIV     Sell         (26)           8    0.86         0.86        0.01        2                54       26.1
           Materials                    Freeport-McMoran Cp & Gld    FCX      Buy          (13)%       $ 49   $ 1.33      $ 1.24      $ 0.11        (3)%            21 %       8.8 x
           Telecommunication Services   AT & T Inc.                  T        Neutral        6%       $ 179   $ 0.57      $ 0.57      $ 0.02        (7)%             (3)%     12.8 x

Source: FactSet, Bloomberg, and Goldman Sachs Global ECS Research.




Goldman Sachs Global Economics, Commodities and Strategy Research                                                                                                                   6
April 15, 2011                                                                                                                                                                             United States



1Q 2011 Earnings Calendar (week of April 18, 2011)
Exhibit 3 cont'd: 1Q 2011 Earnings Calendar
as of April 14, 2011
                                                                                                YTD     Mkt Cap             1Q 2011 EPS                 Consensus 1Q 2011         P/E
          Sector                       Company name                       Ticker    Rating     Return    ($ bil)   GS       Consensus Std. Dev.     YTD Revisions Yr/Yr Growth   (NTM)
Thursday, April 21, 2011
         Consumer Discretionary        McDonald's Corp.                   MCD      Neutral        1%        $ 80   $ 1.16      $ 1.13      $ 0.03         3%             10 %     15.3 x
                                       International Game Technology      IGT      Sell         (12)           5     0.22        0.20        0.02        (3)              0       17.3
          Consumer Staples             Philip Morris Intl                 PM       Buy*          14 %      $ 119   $ 1.05      $ 1.04      $ 0.02         2%             16 %     14.8 x
                                       Reynolds American Inc.             RAI      Sell          13           12     0.59        0.58        0.02        (1)              4       13.7
          Energy                       Schlumberger Ltd.                  SLB      Buy            3%       $ 117   $ 0.75      $ 0.77      $ 0.04        (6)%             24 %    22.6 x
                                       Newfield Exploration Co.           NFX      Buy           (3)           9     0.87        0.93        0.11       (18)             (22)     14.8
                                       Massey Energy Co.                  MEE      Neutral       18            7     0.35        0.56        0.28        (9)              44      18.2
                                       Diamond Offshore Drilling          DO       Buy*          15            5     1.38        1.42        0.11        (7)             (32)     12.2
          Financials                   Morgan Stanley                     MS       Neutral       (1)%       $ 41   $ 0.32      $ 0.37      $ 0.18       (49)%           (64)%     11.2 x
                                       PNC Bank Corp.                     PNC      Neutral        3           33     1.34        1.36        0.09         1             106       11.0
                                       Travelers Cos. Inc.                TRV      Sell           8           26     1.57        1.55        0.15        (4)             27        9.8
                                       Capital One Financial              COF      NC            18           23                 1.54        0.18        28              10        9.5
                                       BB&T Corporation                   BBT      Sell           2           18    0.26         0.31        0.05         5              15       15.6
                                       BlackRock Inc.                     BLK      Neutral        2           18    2.75         2.75        0.07         4              15       15.5
                                       Chubb Corp.                        CB       Buy            4           18    1.26         1.21        0.17       (20)              6       11.0
                                       T. Rowe Price Group                TROW     Buy*           4           17    0.77         0.75        0.02         6              32       20.4
                                       SunTrust Banks                     STI      Neutral       (4)          15    0.07         0.11        0.05         7             124       27.1
                                       Fifth Third Bancorp                FITB     Neutral       (7)          13    0.23         0.25        0.05         9             378       11.7
                                       First Horizon National             FHN      Neutral       (7)           3    0.03         0.04        0.02       (46)            136       28.7
                                       Janus Capital Group                JNS      Neutral       (7)           2    0.16         0.20        0.02         4              18       13.4
          Health Care                  United Health Group Inc.           UNH      Neutral       24 %       $ 49   $ 0.82      $ 0.89      $ 0.07        (2)%            (14)%    12.0 x
                                       Baxter International Inc.          BAX      Buy*           7           31     0.92        0.93        0.01        (5)               0      12.8
                                       Covidien Plc                       COV      Buy           17           26     0.85        0.89        0.02         6                3      13.8
                                       BIOGEN IDEC Inc.                   BIIB     Sell          23           20     1.43        1.41        0.06         3               31      14.0
                                       Laboratory Corp. of America        LH       Neutral        8           10     1.36        1.44        0.07         4               11      15.2
                                       Bard (C.R.) Inc.                   BCR      Neutral       11            9     1.46        1.46        0.01         2               17      15.9
          Industrials                  General Electric                   GE       Buy           10 %      $ 212   $ 0.28      $ 0.28      $ 0.01         2%             33 %     15.0 x
                                       Honeywell Int'l Inc.               HON      Neutral        9           45     0.84        0.81        0.02        (3)             29       15.0
                                       Danaher Corp.                      DHR      Not Rated     10           28                 0.57        0.02        (0)             19       19.3
                                       Ingersoll Rand                     IR       Neutral       (1)          15    0.35         0.32        0.02       (10)            100       15.4
                                       Dover Corp.                        DOV      Buy           11           12    0.90         0.89        0.03        11              37       15.3
                                       Goodrich Corporation               GR       Neutral       (4)          11    1.25         1.25        0.04         7              45       15.4
                                       Rockwell Collins                   COL      Neutral        7           10    0.97         0.96        0.02         1               3       15.0
                                       L-3 Communications Holdings        LLL      Sell           8            9    1.79         1.82        0.05        (3)             (3)       8.9
                                       Southwest Airlines                 LUV      NC           (11)           9                 0.03        0.03       (36)              0       15.9
                                       Robert Half International          RHI      NC            (1)           4                 0.17        0.01       NM              240       31.5
                                       Snap-On Inc.                       SNA      NC             6            3                 0.89        0.09         4              41       14.7
          Information Technology       Xerox Corp.                        XRX      Neutral       (6)%       $ 15   $ 0.21      $ 0.22      $ 0.01        (2)%             22 %    10.0 x
                                       SanDisk Corp.                      SNDK     NC            (6)          11                 1.00        0.07        21                5      11.0
                                       Advanced Micro Devices             AMD      Sell           0            5    0.12         0.05        0.03       (15)             (44)     15.8
                                       Teradyne Inc.                      TER      Buy           20            3    0.36         0.37        0.02        88               12       9.7
          Materials                    Du Pont (E.I.)                     DD       Not Rated      9%        $ 50               $ 1.36      $ 0.03         5%             10 %     14.9 x
                                       Newmont Mining Corp. (Hldg. Co.)   NEM      NC            (6)          28                 1.02        0.12       (12)             23       14.3
                                       Air Products & Chemicals           APD      Neutral        0           19    1.39         1.39        0.01         2              13       15.5
                                       PPG Industries                     PPG      Buy*          11           15    1.34         1.31        0.07        31              87       14.6
                                       Nucor Corp.                        NUE      Neutral        3           14    0.37         0.34        0.07       (21)            240       16.4
                                       Sherwin-Williams                   SHW      Neutral        1            8    0.54         0.52        0.05        15              30       16.8
          Telecommunication Services   Verizon Communications             VZ       Buy*           8%       $ 107   $ 0.51      $ 0.51      $ 0.02        (5)%             (9)%    17.1 x
          Utilities                    American Electric Power            AEP      Neutral       (1)%       $ 17   $ 0.87      $ 0.80      $ 0.05        (1)%             5%      11.3 x

Source: FactSet, Bloomberg, and Goldman Sachs Global ECS Research.



Goldman Sachs Global Economics, Commodities and Strategy Research                                                                                                                                     7
April 15, 2011                                                                                                                                                                                                                                                                                                    United States



S&P 500 Performance
                                                                                                                        Exhibit 5: S&P 500 price return and daily trading volume
Exhibit 4: S&P 500 sector performance over the last week
                                                                                                                        as of April 14, 2011
as of April 14, 2011

                                                                                                                                                1,400                                                                                                                                                                        9
    Consumer Staples                                                                                    1.2
                                                                                                                                                1,300                      S&P 500         S&P 500 daily price level (lhs)                                                                                                   8
             Health Care                                                                          0.8                                                               200-day moving average
                                                                                                                                                                                                                                                                                                                             7




                                                                                                                                                                                                                                                                                                                                 Shares traded (billions)
    Telecom Services                                                      (0.3)                                                                 1,200




                                                                                                                          S&P 500 Price Level
                                                                                                                                                                                                                                                                                                                             6
   Cons Discretionary                                                  (0.7)                                                                    1,100
                                                                                                                                                                                                                                                                                                                             5
                 Utilities                                       (1.0)                                                                          1,000
                                                                                                                                                                                                                                                                                                                             4
     Information Tech                                         (1.3)                                                                              900
                                                                                                                                                                                                                                                                                                                             3
               S&P 500                                  (1.4)                                                                                    800                                                                                                                                                                         2
              Industrials                       (1.9)                                                                                            700
                                                                                                                                                                                      S&P 500 daily trading volume (rhs)                                                                                                     1
              Financials             (2.9)
                                                                                                                                                 600                                                                                                                                                                         0
               Materials (3.4)




                                                                                                                                                        14-Apr-09




                                                                                                                                                                                              14-Oct-09




                                                                                                                                                                                                                                    14-Apr-10




                                                                                                                                                                                                                                                                          14-Oct-10




                                                                                                                                                                                                                                                                                                                 14-Apr-11
                                                                                                                                                                                  14-Aug-09




                                                                                                                                                                                                            14-Dec-09




                                                                                                                                                                                                                                                             14-Aug-10




                                                                                                                                                                                                                                                                                       14-Dec-10
                                                                                                                                                                      14-Jun-09




                                                                                                                                                                                                                                                 14-Jun-10
                                                                                                                                                                                                                        14-Feb-10




                                                                                                                                                                                                                                                                                                    14-Feb-11
                 Energy (3.6)

                         (4.0)          (3.0)         (2.0)            (1.0)          0.0        1.0              2.0
                                                        1-week Total Return (%)


Source: FactSet and Goldman Sachs Global ECS Research.                                                                  Source: FactSet and Goldman Sachs Global ECS Research.


Exhibit 6: S&P 500 sector performance over time                                                                         Exhibit 7: BEST and WORST performing S&P 500 STOCKS BY SECTOR
as of April 14, 2011                                                                                                    as of April 14, 2011

                                                Total Return Percentage Change (%)                                                                                                                        BEST STOCKS                                                                 WORST STOCKS
                             1-Week          1-Month          3-Month          6-Month      YTD         12-Month                                                                                                Return (%)                                                                  Return (%)
 Energy                          (4)%           2%                8%             30 %       13 %          29 %           Sector                                                    Ticker                          1-week                       YTD                  Ticker                        1-week                    YTD
                                                                                                                         Cons Discr                                                COH                                     6%                    (1)%                AN                                (10)%                  15 %
 Health Care                     1              4                 5               9          7                7
                                                                                                                         Consumer Staples                                          SVU                                  17                       11                  DF                                    (5)                12
 Industrials                     (2)            2                 4              15          7            16
                                                                                                                         Energy                                                    EP                                      2                     33                  DNR                                   (9)                17
 Consumer Staples                1              5                 5               9          5            13
                                                                                                                         Financials                                                CBG                                     3                     38                  GNW                                   (8)                   (7)
 Cons Discretionary              (1)            2                 3              14          5            15
                                                                                                                         Health Care                                               BIIB                                 13                       23                  THC                               (12)                      (1)
 Telecom Services                (0)            7                 6              11          5            28
                                                                                                                         Industrials                                               TYC                                  10                       26                  PWR                                   (8)                   5
 Utilities                       (1)            (0)               1               2          2            10             Info Tech                                                 NTAP                                    4                    (12)                 TER                                   (9)                20
 Information Tech                (1)            (0)              (2)              9          2                6          Materials                                                 BLL                                   (0)                       7                 FCX                                   (9)               (13)
 Materials                       (3)            4                 1              15          2            18             Telecom Services                                          S                                       7                     17                  CTL                                   (1)               (12)
 Financials                      (3)            (1)              (3)             11          1                (4)        Utilities                                                 PPL                                     4                       3                 AES                                   (3)                   5
   S&P 500                       (1)%           2%                2%             13 %        5%           11 %                    S&P 500                                          SVU                                  17 %                     11 %                THC                               (12)%                     (1)%

Source: FactSet and Goldman Sachs Global ECS Research.                                                                  Source: FactSet and Goldman Sachs Global ECS Research.




Goldman Sachs Global Economics, Commodities and Strategy Research                                                                                                                                                                                                                                                                                           8
April 15, 2011                                                                                                                                                                                         United States



S&P 500 Performance (cont’d)
Exhibit 8: TOP 10 performing SUB-SECTORS over the last week                                              Exhibit 9: BOTTOM 10 performing SUB-SECTORS over the last week
as of April 14, 2011                                                                                     as of April 14, 2011

       Apparel Accessories &…                                                                    4                      Consumer Electronics                                           (5)
                    Food Retail                                                         3                               Construction Materials                                     (5)
         Real Estate Services                                                  3                                             Diversified Banks                                     (5)
                       Footwear                                            3                               Electronic Manufacturing Services                                       (5)
                  Biotechnology                                        2                                                Multi-Sector Holdings                                     (6)
    Packaged Foods & Meats                                             2                                                   Education Services                                    (6)
             Diversified Support…                                  2                                              Construction & Engineering                               (7)
  Wireless Telecom Services                                        2                                                                Aluminum                         (9)
              Diversified REITs                                2                                                  Diversified Metals & Mining                      (9)
     Health Care Technology                                   2                                                          Health Care Facilities      (12)

                                  0             1             2             3                        4                                            (14)   (12)    (10)   (8)    (6)     (4)             (2)         0
                                                     1-week Total Return (%)                                                                                     1-week Total Return (%)

Source: FactSet and Goldman Sachs Global ECS Research.                                                   Source: FactSet and Goldman Sachs Global ECS Research.


Exhibit 10: TOP 10 performing S&P 500 STOCKS over the last week                                          Exhibit 11: BOTTOM 10 performing S&P 500 STOCKS over the last week
as of April 14, 2011                                                                                     as of April 14, 2011

                                                                                   Return (%)                                                                                                   Return (%)
 Company Name                         Ticker    Sector                     1-week           YTD           Company Name                       Ticker         Sector                           1-week          YTD
 Supervalu Inc.                       SVU       Consumer Staples                   17           11        Tenet Healthcare Corp.             THC            Health Care                         (12)           (1)
 BIOGEN IDEC Inc.                     BIIB      Health Care                        13           23        AutoNation, Inc.                   AN             Cons Discr                          (10)          15
 Tyco International                   TYC       Industrials                        10           26        Denbury Resources Inc.             DNR            Energy                               (9)          17
 Sprint Nextel Corp.                  S         Telecom Services                    7           17        Freeport-McMoran Cp & Gld          FCX            Materials                            (9)          (13)
 Coach, Inc.                          COH       Cons Discr                          6           (1)       Alcoa Inc                          AA             Materials                            (9)           8
 GameStop Corp.                       GME       Cons Discr                          6           11        Teradyne Inc.                      TER            Info Tech                            (9)          20
 Expedia Inc.                         EXPE      Cons Discr                          6           (5)       Range Resources Corp               RRC            Energy                               (9)          17
 Limited Brands, Inc.                 LTD       Cons Discr                          5           23        Genworth Financial Inc.            GNW            Financials                           (8)           (7)
 Lorillard                            LO        Consumer Staples                    5           24        Quanta Services Inc.               PWR            Industrials                          (8)           5
 Iron Mountain Inc.                   IRM       Industrials                         4           39        Fluor Corp.                        FLR            Industrials                          (7)           1
   S&P 500 Average                                                                 (1)          7           S&P 500 Average                                                                      (1)           7

Source: FactSet and Goldman Sachs Global ECS Research.                                                   Source: FactSet and Goldman Sachs Global ECS Research.




Goldman Sachs Global Economics, Commodities and Strategy Research                                                                                                                                                      9
April 15, 2011                                                                                                                                                                                                 United States



Earnings and Sales
Exhibit 12: EARNINGS GROWTH: S&P 500 bottom-up consensus estimates                                              Exhibit 13: SALES GROWTH: S&P 500 bottom-up consensus estimates
as of April 14, 2011                                                                                            as of April 14, 2011
                               2011E Earnings Per Share Growth                           Annual                                                       2011E Sales Per Share Growth                    Annual
                                    1QE           2QE         3QE       4QE        2011E 2012E                                                        1QE     2QE      3QE    4QE                  2011E 2012E
 Energy                             29            32           45        34            35           13           Energy                                33          42      42             42        40               3
 Materials                          33            38           26        16            29           14           S&P 500                               11          12      12             12        11               5
 Financials                         13            24           20        45            25           22           Information Technology                11              9      8            9         9               8
 S&P 500                            15            17           17        20            17           14           Materials                             10              8      7            9            8            6
 Information Technology             23            18           15        15            17           12           Industrials                            9              9      6            5            7            7
 Industrials                        19            16           12         9            14           18           Health Care                            5              5      7            5            5            3
 Health Care                        12            13           12        16            13            6           Consumer Discretionary                 4              4      6            7            5            7
 Consumer Discretionary              5             7           13        12             9           16           Consumer Staples                       5              5      5            2            4            6
 Consumer Staples                     5             7           9         8             7           10           Telecom Services                      (2)             3      1            3            1            3
 Telecom Services                    (7)           (3)          5        20              3          16
 Utilities                           (8)           2           (2)       13             (0)          1
 S&P 500 (ex-Financials)            15            16           17        16            16           12
Source: FactSet and Goldman Sachs Global ECS Research.                                                          Source: FactSet and Goldman Sachs Global ECS Research.
Exhibit 14: TOP-DOWN vs. BOTTOM-UP: Goldman Sachs vs. Consensus                                                 Exhibit 15: TOP-DOWN vs. BOTTOM-UP: Sales and Margins
as of April 14, 2011                                                                                            as of April 14, 2011
                                                                                                                 10%
                                                                                                                                                                                  Bottom-up Consensus
                                    Contribution to EPS                 Annual earnings growth rates               9%          S&P 500 Net Profit Margin                                Forecast
                            GS Top-Down EPS              Bottom-up      GS Top-Down           Bottom-Up                          (trailing four quarters)
                                                                                                                   8%                                                                                          8.5
                            2011E        2012E     2011E      2012E     2011E   2012E       2011E    2012E
   Energy                     $13          $14       $14        $16      22 %    10 %         35 %       13 %      7%

   Materials                    3            3            3         4    11       5           29         14
                                                                                                                   6%
                                                                                                                                                                                                         5.9
   Telecom Services             3            3            2         3    14      (0)           3         16
                                                                                                                                                                                                  Goldman Sachs
                                                                                                                   5%
   Information Technology      17           20           18      20      13      14           17         12                                                                                           Portfolio
                                                                                                                                                                                                     Strategy
   Industrials                  9           10            9      11       8      12           14         18        4%                                                                                Forecast
                                                                                                                                                                                    4.7
   Health Care                 12           13           12      13      12       6           13          6                                             4.1
                                                                                                                   3%
   Consumer Staples             9           10            9      10       7       6            7         10
                                                                                                                        1979




                                                                                                                                   1984




                                                                                                                                               1989




                                                                                                                                                                1994




                                                                                                                                                                           1999




                                                                                                                                                                                           2004




                                                                                                                                                                                                        2009




                                                                                                                                                                                                                         2014
   Consumer Discretionary       9            9            9      10       5       5            9         16
   Utilities                    3            3            3         3     4      (1)          (0)         1                                                  Goldman Sachs                 Consensus
S&P 500 ex-Financials          78            85          81      91      11       8           16         12                                                 Portfolio Strategy              Bottom-Up
   Financials                  18           21           17      21      31      20           25         22                                                  2011E     2012E              2011E 2012E
S&P 500 Operating EPS         $96          $106      $98       $112      15 %    11 %         17 %       14 %   Sales Growth                                   8.1 %     7.2 %            11.5 %   5.2 %
                                                                                                                Margin Level                                   8.8 %     9.0 %             8.9 %   9.5 %
                                                                                                                 Margin Change (%) Y/Y                            4         1                 5       7
                                                                                                                 Margin Change (bp) Y/Y                          31        13                39      61
Source: FactSet and Goldman Sachs Global ECS Research.                                                          Source: Compustat, FactSet, and Goldman Sachs Global ECS Research.



Goldman Sachs Global Economics, Commodities and Strategy Research                                                                                                                                                               10
April 15, 2011                                                                                                                                                                                                                                                                                                                                                                                             United States



Revisions
Exhibit 16: EARNINGS and SALES REVISIONS                                                                                                                                                                       Exhibit 17: Stocks with the most POSITIVE and NEGATIVE EPS REVISIONS
Aggregate dollars % change, as of April 14, 2011                                                                                                                                                               as of April 14, 2011
                                                                                    EPS REVISIONS                                                SALES REVISIONS                                                                             POSITIVE 2011 EPS REVISIONS                                                                           NEGATIVE 2011 EPS REVISIONS
                                                                           1 month                         3 month                      1 month                             3 month                                                            1 month                                        3 month                                                          1 month                              3 month
                                                                          11E            12E             11E        12E               11E              12E         11E             12E                          Ticker                       Revis. Return                                  Revis. Return                      Ticker                        Revis. Return                        Revis. Return

 Energy                                                              7.7 % 7.6 %                        15.0 % 12.2 %                9.9 %            7.5 %       16.5 % 13.3 %                                 ZION                           631 %                     1%                  (83)%          (5)%                   XL                         (37)%          10 %                  (45)%                   3%
 S&P 500                                                             0.7                 1.1             2.0       2.4               2.2              1.9          4.2             4.2
                                                                                                                                                                                                                DFS                               30                     9                   34             18                     MI                         (24)            2                    (70)           10
 Telecommunication Services                                          0.2                 0.5            (4.3)      (4.4)             2.9              3.6          3.7             5.5
                                                                                                                                                                                                                RF                                25                    (2)                  NM             (3)                    ACE                        (15)            8                    (18)                    9
 Industrials                                                         0.2                 0.1             1.6       2.3               (0.3)            (0.5)        0.1             0.8
                                                                                                                                                                                                                DNR                               19                    (3)                  43             17                     MSI                        (14)            7                    (30)           15
 Information Technology                                              0.1                 0.5             4.4       4.2               0.1              0.6          1.7             2.8
                                                                                                                                                                                                                APC                               15                     3                   31             (0)                    VMC                        (13)            2                   (211)                    6
 Materials                                                           0.1                 0.5             3.9       4.1               0.5              1.0          4.3             4.5
 Consumer Staples                                                    0.0                 0.0            (0.2)      (0.5)             0.2              0.0          0.9             0.7
                                                                                                                                                                                                                MUR                               15                     5                    6             (1)                    MS                         (13)           (4)                   (16)               (8)

 Health Care                                                       (0.0)                 0.0            (0.9)      (0.2)             0.2              0.6          0.8             0.9                          COG                               15                    14                  139             36                     LEN                         (8)           (6)                     (7)        (12)
 Utilities                                                         (0.2)                 0.3            (0.8)      (0.3)             NM               NM          NM               NM                           TSO                               15                     1                   53             39                     APOL                        (8)           (4)                     (8)              (6)
 Consumer Discretionary                                            (0.4)            (0.0)               (0.2)      1.1               1.6              1.4          2.5             3.8                          COP                               13                     3                   22             16                     MMI                         (6)           (6)                   (27)         (31)
 Financials                                                        (2.0)            (0.0)               (3.3)      (0.9)             NM               NM          NM               NM                           HES                               13                     0                   26             (3)                    NEM                         (6)           10                    (19)                    3
                                                                                                                                                                                                                S&P 500                                1%                2%                   2%             2%                                                 1%            2%                        2%                 2%

Source: FirstCall, I/B/E/S, FactSet, and Goldman Sachs Global ECS Research.                                                                                                                                    Source: FirstCall, I/B/E/S, FactSet, and Goldman Sachs Global ECS Research.


Exhibit 18: S&P 500 1-Month EPS Revision Sentiment vs. 1-Month Return                                                                                                                                          Exhibit 19: 1-Month Earnings Revision Sentiment by SECTOR
as of April 13, 2011                                                                                                                                                                                           as of April 13, 2011
                                                                                                                                                                                                                                     30 %
                               60%                                                                                                                                          30 %
                                                                                                                                                                                                                                     25 %
                                               S&P 500                   1-Month FY2 EPS Revision Sentiment (lhs)
                               40%                                   [(# pos. revisions - # neg. revisions)/ total revisions]                                               20 %                                                     20 %                                                              1-Month Earnings Revision Sentiment by Sector
 1-Month Revision Sentiment




                                                                                                                                                                                    S&P 500 Monthly % Return

                                                                                                                                                                                                                                                                                                     [(# pos. revisions - # neg. revisions)/ total revisions]
                                                                                                                                                                                                                                     15 %




                                                                                                                                                                                                                Earnings Sentiment
                               20%                                                                                                                                          10 %
                                                                                                                                                                                                                                     10 %

                              (0)%                                                                                                                                          0%                                                        5%

                                                                                                                                                                                                                                      0%
                              (20)%                                                                                                                                         (10)%
                                                                                                                                                                                                                                     (5)%
                                                         Price Performance (rhs)
                                                                                                                                                                                                                                     (10)%
                              (40)%                                                                                                                                         (20)%

                                                                                                                                                                                                                                                            Materials




                                                                                                                                                                                                                                                                                                  S&P 500




                                                                                                                                                                                                                                                                                                                                                                 Info Tech
                                                                                                                                                                                                                                              Energy




                                                                                                                                                                                                                                                                                                                                                                                                                Telecom Services
                                                                                                                                                                                                                                                                                                                                               Health Care




                                                                                                                                                                                                                                                                                                                                                                                                   Utilities
                                                                                                                                                                                                                                                                                                                              Consumer Discr




                                                                                                                                                                                                                                                                                                                                                                               Consumer Staples
                                                                                                                                                                                                                                                                              Industrials




                                                                                                                                                                                                                                                                                                                 Financials
                              (60)%                                                                                                                                         (30)%
                                      Dec-05




                                                        Dec-06




                                                                                Dec-07




                                                                                                          Dec-08




                                                                                                                            Dec-09




                                                                                                                                                         Dec-10
                                               Jun-06




                                                                 Jun-07




                                                                                               Jun-08




                                                                                                                   Jun-09




                                                                                                                                             Jun-10




                                                                                                                                                                   Jun-11




Source: FirstCall, I/B/E/S, FactSet, and Goldman Sachs Global ECS Research.                                                                                                                                    Source: FirstCall, I/B/E/S, FactSet, and Goldman Sachs Global ECS Research.




Goldman Sachs Global Economics, Commodities and Strategy Research                                                                                                                                                                                                                                                                                                                                                                  11
April 15, 2011                                                                                                                                                                                                   United States



Valuation
Exhibit 20: Aggregate valuation metrics for S&P 500 and sectors                                                     Exhibit 21: Standard deviation vs. 10-year history (Z-Score)
bottom-up consensus valuation, as of April 14, 2011                                                                 bottom-up consensus, as of April 14, 2011
                             EV/    EV/    Price/ FCF   PEG NTM                                                                                        EV/    EV/  Price/            FCF                PEG       Median
                            Sales EBITDA Book Yield Ratio P/E                                                                                         Sales EBITDA Book              Yield    P/E       Ratio     Z-Score

 S&P 500                      1.4x    8.1x   2.4x 5.8 %  1.3x 13.3x                                                  S&P 500                            (0.7)        (1.1)   (0.8)    (0.7)   (1.1)      (0.1)      (0.8)

 Telecommunication Services   1.9     6.2    2.0 10.4    3.2  17.4                                                   Health Care                        (1.4)        (1.5)   (1.2)    (1.5)   (1.0)       0.9       (1.3)

 Industrials                  1.8    10.8    3.1  6.3    1.2  15.4                                                   Information Technology             (0.2)        (1.3)   0.6      (1.3)   (1.4)      (1.3)      (1.3)

 Consumer Discretionary       1.4     8.2    3.0  6.5    1.1  15.4                                                   Utilities                          NM           (0.2)   (0.3)    (0.2)      0.6      3.1       (0.2)

 Consumer Staples             1.3     9.4    3.6  5.4    1.6  14.8                                                   Financials                         NM           NM      (1.3)     NM        0.2      0.6        0.2

 Materials                    1.5     8.6    3.1  5.1    1.7  13.9                                                   Consumer Discretionary              2.8         0.8     2.4      (0.7)   (0.2)      (1.0)       0.3

 Information Technology       2.2     8.6    3.7  7.1    1.0  13.1                                                   Consumer Staples                    1.6         0.8     (0.6)     0.4       0.4      0.3        0.4
                                                                                                                     Materials                           1.2         0.3     1.7       0.7       0.2      0.8        0.8
 Utilities                   NM       7.1    1.5  1.8    3.7  12.7
                                                                                                                     Energy                             (0.7)        0.8     0.8       1.2       1.0     (0.2)       0.8
 Financials                   NM      NM     1.2  NM     1.4  12.1
                                                                                                                     Industrials                         0.8         1.1     2.5       0.9       1.8     (0.5)       1.0
 Energy                       1.0     6.6    2.5  2.0    1.1  12.1
                                                                                                                     Telecommunication Services         (0.3)        1.1     1.0      (0.4)      2.5      2.2        1.0
 Health Care                  1.2     7.4    2.6  7.7    1.4  11.9
Source: Compustat, FirstCall, via FactSet, and Goldman Sachs Global ECS Research.                                   Source: Compustat, FirstCall via FactSet, and Goldman Sachs Global ECS Research.


Exhibit 22: Historical NTM P/E and LTM P/B values for the S&P 500                                                   Exhibit 23: Top stocks by fastest 2011E earnings growth and lowest NTM P/E
aggregate bottom-up consensus valuation, as of April 14, 2011                                                       by sector, as of April 14, 2011
               30                                                                                                                                      GROWTH                                          VALUE
               25                                                                                                                                   Fastest EPS Growth (%)                              Lowest P/E (x)
                                                P/E                                                                  Sector                  Ticker   2011E       2012E                 Ticker         NTM Rel to SPX
 NTM P/E (x)




               20
               15                                                                                                    Cons Discr              HOG                97           28         GCI             6.5           0.5
               10
                                                                                                          13.3       Consumer Staples        EL                 24           17         SVU             9.0           0.7
               5                                                      10-yr rolling avg
               0
                                                                                                                     Energy                  VLO                88            8         CVX             8.4           0.6

                    1/76   1/79   1/82   1/85   1/88   1/91   1/94     1/97   1/00       1/03   1/06   1/09          Financials              HBAN               85           33         HIG             6.9           0.5
                                                                                                                     Health Care             ESRX               29           21         FRX             8.0           0.6
               6
               5                                                                                                     Industrials             PCAR               95           47         LLL             8.9           0.7
                                                P/B
 LTM P/B (x)




               4                                                                                                     Info Tech               NVDA               59           23         LXK             7.5           0.6
               3
                                                                                                                     Materials               CF                 92           (9)        CLF             7.8           0.6
               2
                                                                     10-yr rolling avg
               1                                                                                              2.4    Telecom Services        CTL                70            1         T              12.8           1.0
               0
                                                                                                                     Utilities               FE                 19           (5)        AES             9.4           0.7
                   1/76    1/79   1/82   1/85   1/88   1/91   1/94    1/97    1/00       1/03   1/06   1/09

Source: Compustat, FactSet, and Goldman Sachs Global ECS Research.                                                  Source: Compustat, FactSet, and Goldman Sachs Global ECS Research.




Goldman Sachs Global Economics, Commodities and Strategy Research                                                                                                                                                           12
April 15, 2011                                                                                                                                                                                                United States



S&P 500 Factor Performance
                                                                                                      (a)
Exhibit 24: S&P 500 factor return ranking for the week ended April 14, 2011
                                                       Last Week Spread (%)                                       Performance Spread of Top Quintile Less Bottom Quintile (%)
                                                                                                 Last                                   Last Five Trading Days                                       Last          Last
                         (b)            (2)      (1)       0        1        2        3
 Growth Metrics                                                                                 Week               8-Apr           11-Apr          12-Apr           13-Apr           14-Apr         Month        Quarter
   EPS Growth                                                                                      0.3                (0.5)            0.3              0.7             (0.2)            (0.0)        (0.0)        (4.2)
   Sales Growth                                                                                    0.3                (0.3)           (0.0)             0.3              0.6             (0.3)        (0.6)        (4.5)
   GROWTH                                                                                          0.3                (0.5)            0.1              0.6              0.3             (0.2)        (1.0)        (6.0)
   EBITDA Growth                                                                                   0.0                (0.6)            0.1              0.6              0.1             (0.1)        (0.4)        (5.5)

                   (b)
 Value Metrics
   EV/DACF                                                                                         2.6                (0.3)            0.9              0.9              0.6             0.5           1.9          1.9
   EV/EBITDA                                                                                       2.4                (0.4)            0.8              0.6              0.8             0.5           0.6         (0.3)
   VALUATION                                                                                       2.3                (0.4)            0.6              0.7              1.0             0.5           0.7          0.6
   P/E                                                                                             1.7                (0.2)            0.6              0.3              0.7             0.3           2.3          2.1
   P/B                                                                                             1.6                (0.2)            0.7              0.5              0.6             (0.1)         2.2          3.6
   EV/FCF                                                                                          0.5                (0.0)           (0.6)            (0.1)             0.5             0.8           0.7          5.7
   P/DIV                                                                                          (0.2)               (0.2)           (0.1)            (0.1)             0.9             (0.6)         2.1          1.5

                               (b)
 Profitability Metrics
   ROE                                                                                             1.3                0.0              0.5              0.5              0.5             (0.3)         2.6          3.7
   PROFITABILITY                                                                                   0.6                (0.2)            0.4              0.1              0.5             (0.3)         1.0          1.3
   CROCI                                                                                           0.3                (0.0)            0.4             (0.2)             0.5             (0.5)        (0.2)        (1.7)
   ROCE                                                                                            0.2                (0.3)            0.3              0.1              0.5             (0.4)         2.3          2.3

                   (c)
 Other Metrics
   Short Interest Level                                                                           (0.9)               (0.4)           (0.3)            (0.0)            (0.1)            (0.1)        (0.8)        (1.3)
   Equity Capitalization                                                                           0.8                0.3              0.4             (0.0)             0.0             0.1          (1.1)        (1.3)


(a)   Factor return analysis uses S&P 500 companies included in the Goldman Sachs Americas coverage universe with stock prices greater than $5 at the time of publication.
(b) Growth, Value and Profitability analysis is based on Goldman Sachs Investment Profile scores (“IP Scores”). Growth, value and profitability metrics are indexed based on composites of several methodologies to
determine the stocks percentile ranking within the region’s coverage universe. The precise calculation of each metric may vary depending on the fiscal year, industry and region but the standard approach is as follows:
Growth is a composite of next year’s estimate over current year’s estimate, e.g. EPS, EBITDA, Revenue. Return is a year one prospective aggregate of various return on capital measures, e.g. CROCI, ROACE, and ROE.
Multiple is a composite of one-year forward valuation ratios, e.g. P/E, dividend yield, EV/FCF, EV/EBITDA, EV/DACF, Price/Book.
(c)   “Other metric” analysis based on current market prices and data sourced from NASDAQ and NYSE via FactSet.

Source: NASDAQ and NYSE via FactSet, IDC, and Goldman Sachs Global ECS Research.



Goldman Sachs Global Economics, Commodities and Strategy Research                                                                                                                                                           13
April 15, 2011                                                                                                                                                                                                                                                                                    United States



Style and Size
Exhibit 25: Total return by style and size over time                                                                                                     Exhibit 26: Total return by SECTOR for S&P 500 vs. Russell 2000
as of April 14, 2011                                                                                                                                     as of April 14, 2011

                                                                   Total Return Percentage Change (%)                                                                                         Weight (%)                        1-Week (% Return)                                YTD (% Return)
                                                                                                                                                          Sector                             SP500 R2000                      SP500 R2000 ∆ (bps)                             SP500 R2000 ∆ (bps)
                                                        1-Week              1-Month 3-Month 6-Month                                            YTD
                                                                                                                                                          Consumer Staples                     11                3                 1            (1)                257            5               5                 14
 Large Cap vs. Small Cap                                                                                                                                                                                                                                           223
                                                                                                                                                          Industrials                          11               16               (2)            (4)                               7               4            305
  S&P 500                                                       (1)                   2                  2                  13                     5      Cons Discretionary                   11               13               (1)            (3)                186            5               3            217
  Russell 2000                                                  (3)                   4                  3                  18                     6      Energy                               13                7               (4)            (5)                119         13                13           (34)
    Large vs. Small (bps)                                      117                (228)               (63)                 (502)               (82)       Utilities                             3                3               (1)            (2)                118          2                 4          (180)
                                                                                                                                                          Information Tech                     18               19               (1)            (2)                115            2               9          (661)
                                                                                                                                                          Health Care                          11               12                1             (0)                 90            7              12          (432)
 Growth vs. Value                                                                                                                                         Materials                             4                6               (3)            (4)                 28            2               8          (628)
  Russell 1000 Growth                                           (1)                   2                  2                  14                     5      Financials                           16               20               (3)            (2)            (48)               1               1            28
  Russell 1000 Value                                            (2)                   1                  3                  13                     5      Telecom Services                       3               1               (0)            2             (281)               5               6          (177)

    Growth vs. Value (bps)                                      41                 51                 (25)                  78                   (7)        Index                            100          100                    (1)            (3)                117            5               6             (82)

Source: FactSet and Goldman Sachs Global ECS Research.                                                                                                   Source: FactSet and Goldman Sachs Global ECS Research.


Exhibit 27: GROWTH vs. VALUE relative performance over time                                                                                              Exhibit 28: LARGE CAP vs. SMALL CAP relative performance over time
Russell 1000 Growth vs. Value, as of April 14, 2011                                                                                                      S&P 500 vs. Russell 2000, as of April 14, 2011
                                                                                                                                                           110
  105
                                                                                                                                                                                                                                                                     S&P 500 outperforming
                                                                                                                Value outperforming
                                                                                                                                                           105
  100


   95                                                                                                                                                      100


   90                                                                                                                                                        95


   85                                                                                                                                                        90

                                            Growth outperforming                                                                                                                             Russell 2000 outperforming
   80                                                                                                                                                        85
                                                                                                                                                                  Jan-09




                                                                                                                                                                                              Jul-09

                                                                                                                                                                                                       Sep-09

                                                                                                                                                                                                                     Nov-09

                                                                                                                                                                                                                              Jan-10




                                                                                                                                                                                                                                                          Jul-10

                                                                                                                                                                                                                                                                     Sep-10

                                                                                                                                                                                                                                                                               Nov-10

                                                                                                                                                                                                                                                                                        Jan-11
                                                                                                                                                                           Mar-09

                                                                                                                                                                                    May-09




                                                                                                                                                                                                                                       Mar-10

                                                                                                                                                                                                                                                 May-10




                                                                                                                                                                                                                                                                                                  Mar-11

                                                                                                                                                                                                                                                                                                           May-11
        Jan-09




                                   Jul-09

                                             Sep-09

                                                      Nov-09

                                                                Jan-10




                                                                                             Jul-10

                                                                                                       Sep-10

                                                                                                                  Nov-10

                                                                                                                             Jan-11
                 Mar-09

                          May-09




                                                                         Mar-10

                                                                                    May-10




                                                                                                                                      Mar-11

                                                                                                                                                May-11




Source: FactSet and Goldman Sachs Global ECS Research.                                                                                                   Source: FactSet and Goldman Sachs Global ECS Research.




Goldman Sachs Global Economics, Commodities and Strategy Research                                                                                                                                                                                                                                                    14
April 15, 2011                                                                                                                                                                                        United States



Global Equity Market and Mutual Fund Performance
Exhibit 29: GLOBAL EQUITY MARKET performance over the past week                                           Exhibit 30: US EQUITY MUTUAL FUND performance vs. benchmark
as of April 14, 2011                                                                                      as of April 14, 2011

                                                                                                                                                 Avg. Total Return (%)               Stdev          No. of   AUM
          Japan (Nikkei)                                                                      3            Lipper Indices                           1-week           YTD      1-Week       YTD      Funds    $ bil
         Korea (KOSPI)                                                       1                             Large-Cap Core Funds                        (1.3)         4.6       0.4           1.3      30     380
        Germany (Dax)                                                    1                                  Benchmark: S&P 500                         (1.4)         5.1
     Australia (ASX 200)                                            0                                       Out / (Underperformance) (bps)               9           (50)
  Europe (DJ Stoxx 600)                                      (0)
                                                                                                           Large-Cap Growth Funds                      (1.3)         3.6       0.5           2.6      30     415
       France (CAC 40)                                      (0)
                                                                                                            Benchmark: Russell 1000 Growth             (1.2)         5.3
         UK (FTSE 100)                                     (0)
                                                                                                            Out / (Underperformance) (bps)              (5)         (177)
    China (MSCI China)                                  (1)
                                                                                                           Large-Cap Value Funds                       (1.6)         5.3       0.4           1.0      30     196
         Mexico (Bolsa)                                (1)
                                                                                                            Benchmark: Russell 1000 Value              (1.6)         5.4
        Spain (IBEX 35)                               (1)
                                                                                                            Out / (Underperformance) (bps)               4           (14)
         U.S. (S&P 500)                         (1)
       Brazil (Bovespa)      (3)                                                                           Small-Cap Core Funds                        (2.5)         6.0       0.4           1.6      30     159
                                                                                                            Benchmark: Russell 2000                    (2.6)         5.9
                           (4)     (3)         (2)      (1)    0       1         2       3            4     Out / (Underperformance) (bps)              12           13
                                                     % Weekly price change

Source: FactSet and Goldman Sachs Global ECS Research.                                                    Source: Lipper, FactSet, and Goldman Sachs Global ECS Research.


Exhibit 31: GLOBAL EQUITY MARKET performance over time                                                    Exhibit 32: International and other MUTUAL FUND performance
as of April 14, 2011                                                                                      as of April 14, 2011
                                                      Price Return (%) USD                                                                            Avg. Total Return (%)            Stdev        No. of   AUM
                                   1-Week        1-Month 3-Month        2011 YTD             2010
                                                                                                          Lipper Indices                               1-week         YTD       1-week        YTD   Funds    $ bil
   Spain (IBEX 35)                       (1)             6         11            16           (23)        International Equity
   France (CAC 40)                       (0)             6          8            12           (10)          Global Funds                                      (1)         5          0.6      1.5     30     193
   Germany (Dax)                         1               8          9            11               9
                                                                                                            International Funds                               (0)         5          0.7      1.7     30     479
   Korea (KOSPI)                         1              13          4                9         25
                                                                                                            European Funds                                    (0)         8          0.5      1.7     10      NA
   Europe (DJ Stoxx 600)                 (0)             5         6                 8            2
                                                                                                            Emerging Market Funds                             (1)         2          0.4      1.3     29      NA
   Australia (ASX 200)                   0              10          8                6         11
   China (MSCI China)                    (1)             5          2                6            5       Real Estate and Natural Resources

   UK (FTSE 100)                         (0)             4          2                6            6         Real Estate                                        0          6          0.3      0.8     30       50
   U.S. (S&P 500)                        (1)             1          2                5         13           Natural Resource                                 (4)          9          0.3      2.8     10      NA
   Mexico (Bolsa)                        (1)             4          0                1         27         Fixed Income
   Brazil (Bovespa)                      (3)             4         (1)               0            6         General U.S. Government Funds Index                0       (0)           0.3      1.5     30      NA
   Japan (Nikkei)                        3              (1)        (8)           (8)           11
                                                                                                            A Rated Bond Funds Index                           0          1          0.2      0.8     30      NA
                                                                                                            BBB Rated Funds Index                              0          2          0.3      1.6     30      NA
     Average                             (0)             5          4                6            7

Source: FactSet and Goldman Sachs Global ECS Research.                                                    Source: Lipper, FactSet, and Goldman Sachs Global ECS Research.




Goldman Sachs Global Economics, Commodities and Strategy Research                                                                                                                                                15
April 15, 2011                                                                                                                                                                                       United States



ETF Analysis: Composition, Valuation, Growth and Ownership
Exhibit 33: Selected ETF analysis for the week ended April 14, 2011 (a) (b)

                           ETF Description                                        Composition              Performance (%)          Valuation                   Growth (%)                     Ownership
                                                            Market                    Top Stocks as                                 Valuation                                              Short       Median
                                                                                                                        (a)
                                                             Cap         No. of         % of ETF             Price Change       P/E    P/B     Div     Sales Growth   Earnings Growth     Interest    Hedge Fund
                                                                                                                                                                                                               (c)
 Sector / sub-sector           Index           ETF           $ mil       Stocks     1      5        10       1 Wk      YTD      NTM   LTM     Yield    2011    2012    2011     2012        Days       Own (%)
 S&P 500                       SPX             SPY            89,695        500      3      11      19          (1)      5        13     2.3     1.9      10      6        16       13        1.9         3.3
 S&P 100                       OEX             OEF             2,993        100      6      18      30          (1)      4        12     2.3     2.1      12      6        16       13        1.3         1.9
 Nasdaq-100                    NDX             QQQ            24,695        100     20      36      46          (1)      4        15     3.9     0.7      16     10        18       15        1.6         4.2
 Consumer Discretionary        IXY             XLY             2,230         79      6      28      44          (1)      4        15     2.8     1.5       8      6        15       16        2.3         5.4
  Homebuilders                 SPHOME          XHB               890         35      5      21      39          (1)      5        27     2.0     1.1       3     10       197       79        3.2         5.2
  Retail                       IRH             RTH               238         18     18      58      83           0       2        15     2.8     1.8       6      5        11       13        1.9         3.3
  Retail                       SPSIRETR        XRT               486         92      2       7      13           0       3        17     2.6     0.8       5      4        15       20        2.9         6.8
 Consumer Staples              IXR             XLP             3,728         41     14      45      65           1       5        15     3.4     3.0       5      4         8       10        2.3         2.0
 Energy                        IXE             XLE             9,932         41     17      48      62          (4)     12        13     2.5     1.5      23      9        34       14        1.7         4.2
  Clean Energy                 ECO             PBW               534         57      3      12      23          (4)     (3)       21     2.1     0.3      26     14       NM        37        4.1         4.1
  Natural Resources            SPGSSINR        IGE             2,431        144      8      30      43          (4)      8        14     2.4     1.3      21      9        35       16        1.9         4.1
  Oil & Gas E&P                SPSIOP          XOP             1,168         72      2       8      16          (5)     16        21     2.7     0.4      18     13       119       40        2.1         6.2
  Oil Services                 OXH             OIH             3,116         14     18      65      92          (4)     11        18     2.2     0.7      17     13        15       30        1.6         4.2
 Financials                    IXM             XLF             8,109         82      9      39      53          (3)      1        12     1.1     1.4     NM     NM         21       23        1.7         3.0
   Banks                       BKX             KBE             1,900         24      9      36      59          (3)     (2)       13     1.1     1.5     NM     NM         51       34        1.1         3.0
   Broker-Dealers              DJSINV          IAI               166         26      9      34      57          (3)      2        15     1.5     1.1     NM     NM         25       25        1.4         3.6
   Insurance                   KIX             KIE               211         24      9      36      57          (3)      1        11     1.0     1.8     NM     NM         16       27        2.3         3.7
   Real Estate                 DJUSRE          IYR             3,090         81      8      24      39           0       5        16     2.4     4.1     NM     NM          9        7        5.1         2.9
   Regional Banks              KRX             KRE               645         50      3      14      26          (3)     (0)       22     1.3     1.8     NM     NM        NM        59        8.1         2.0
   REITs                       RMZ             VNQ             8,735        104      9      27      43           1       5        17     2.4     3.5     NM     NM         11        8        5.4         2.7
 Health Care                   IXV             XLV             3,226         52     12      41      57           1       7        12     2.6     2.2       4      3        4        6         2.2         4.5
  Biotech                      SPSIBI          XBI               482         44      4      18      34           2      11       NM      6.4     0.0       7     16       NM       NM         4.0         9.4
  Pharmaceuticals              IPH             PPH               519         14     23      77      96           1       4        11     2.6     3.4       4      0        4        2         2.0         3.7
 Industrials                   IXI             XLI             3,976         59     11      32      50          (2)      6        15     3.2     2.0       7      8        18       18        2.2         2.2
   Transportation              TRAN            IYT               693         20     10      43      72          (1)      3        20     2.7     1.6       9      8        18       36        2.4         3.4
 Information Technology        IXT             XLK             7,031         83     12      40      60          (1)      2        14     3.3     1.6       9      7        13       12        1.5         4.0
   Semiconductors              SOXXIV          SOXX              226         30      8      38      58          (3)      4        12     3.3     1.3      13      7        10        9        1.7         4.3
   Semiconductors              XSH             SMH               561         18     22      65      86          (3)      5        12     3.4     1.9      10      6         6        7        1.5         3.9
   Software                    SPGSTISO        IGV               561         52     10      36      57          (0)      6        19     4.2     0.4       9      9        13       15        2.2         4.1
   Telecom Services            DJSTELT         IYZ               631         30     16      49      70           1       2        31     2.2     3.2      10      4        50       40        2.9         5.7
 Materials                     IXB             XLB             2,805         30     11      48      68          (4)      2        14     3.1     1.8      11      6        35       13        1.8         3.3
  Gold Miners                  GDM             GDX             6,713         30     15      46      68          (2)      0        18     2.7     0.6      25      7        61        8        1.1         3.2
  Metals & Mining              SPSIMM          XME             1,476         43      4      16      29          (4)      5        17     2.4     0.7      16      9       135       36        2.1         5.3
  Steel                        STEEL           SLX               263         26     15      51      74          (4)     (1)       10     1.8     1.4      18     10        62       15        1.8         2.4
 Utilities                     IXU             XLU             4,054         33      8      34      55          (1)      1        13     1.5     4.5     NM     NM          (2)     (0)       2.2         1.9
(a)   Performance of the underlying index.
(b)   Valuation, growth and ownership metrics are bottom-up aggregations of consensus forecasts, except where noted.
(c)   Hedge Fund ownership data based on 4Q 2010 13-F filings.

Source: Compustat, First Call, Lionshare via FactSet, IDC, and Goldman Sachs Global ECS Research. See our Goldman Sachs ETF Bloomberg page <GETFG> or contact the desk at 1-888-ETF-DESK for more information.




Goldman Sachs Global Economics, Commodities and Strategy Research                                                                                                                                                16
April 15, 2011                                                                                                                                                                                                                                         United States



Fund Flows
Exhibit 34: Domestic equity mutual fund flows, 4-week moving average                                                                                   Exhibit 35: US EQUITY MUTUAL FUND performance vs. benchmark
week ended April 13, 2011                                                                                                                              week ended April 13, 2011; excluding ETFs

                5.0                                                                                                                                                                                   AMG Weekly Mutual Fund Flows, ex-ETFs ($ billions)
                                                            Domestic Equities, 4-week moving avg                                                                                 Total AMG             Weekly Flows      1-Week Flow    Inflow/(Outflow)
                3.0                                                                                                                                                               Assets           4-Week Avg This week % of Assets     (Cons. Weeks)
                                                                                                                                                        All Equity                   2,115              1.3          1.4             0.1 %                   3
                1.0                                                                                                                                     U.S. Equity                  1,574              0.5          0.8             0.1                     3
  $ billions




                                                                                                                                                        Int'l Equity                   437              0.7          0.3             0.1                 32
               (1.0)
                                                                                                                                                        Global                         104              0.2          0.3             0.3                 14

               (3.0)                                                                                                                                    Equity Income                   83              0.4          0.3             0.3                 33
                                                                                                                                                        Gold & Nat Res                  50              0.2          0.2             0.4                 11
               (5.0)                                                                                                                                    Money Market                 2,348              0.8          7.9             0.3                     3
                                                                                                                                                        All Taxable Bond             1,153              3.1          2.5             0.2                 17
               (7.0)
                                                                                                                                                        Govt Treas                      24              0.0          0.1             0.2                     1
                       Dec-05

                                    Jun-06

                                               Dec-06

                                                        Jun-07

                                                                 Dec-07

                                                                                Jun-08

                                                                                               Dec-08

                                                                                                          Jun-09

                                                                                                                   Dec-09

                                                                                                                            Jun-10

                                                                                                                                     Dec-10

                                                                                                                                              Jun-11
Source: Lipper and Goldman Sachs Global ECS Research.                                                                                                  Source: Lipper and Goldman Sachs Global ECS Research.


Exhibit 36: Average daily TRADING TURNOVER over the last week                                                                                          Exhibit 37: Top ten S&P 500 STOCKS by daily average trading turnover
by sector, as of April 14, 2011                                                                                                                        as of April 14, 2011

                         Materials                                                                                                                                                                                                     Avg Daily         1-Week
                                                                                                                     1.3
                                                                                                                                                                                                                                        Trading              Total
                       Cons Discr                                                                       1.0
                                                                                                                                                        Company                              Ticker Sector                           Turnover (%)      Return (%)
                         Info Tech                                                                 0.9
                                                                                                                                                        Netflix Inc.                         NFLX     Consumer Discretionary                 9.6                 1
                                Utilities                                                 0.8
                                                                                                                                                        United States Steel Corp.            X        Materials                              7.6                 (5)
                          S&P 500                                                        0.8
                                                                                                                                                        Supervalu Inc.                       SVU      Consumer Staples                       7.5                 17
                                Energy                                                   0.7
                                                                                                                                                        AK Steel                             AKS      Materials                              6.9                 (5)
                       Financials                                                   0.7
                                                                                                                                                        Tenet Healthcare Corp.               THC      Health Care                            6.6             (12)
                       Industrials                                                0.7                                                                   PPL Corp.                            PPL      Utilities                              5.9                 4
                   Health Care                                              0.6                                                                         Expedia Inc.                         EXPE     Consumer Discretionary                 5.5                 6
           Telecom Services                                               0.5                                                                           National Semiconductor               NSM      Information Technology                 5.3                 0
                 Cons Staples                                       0.5                                                                                 GameStop Corp.                       GME      Consumer Discretionary                 5.2                 6
                                                                                                                                                        JDS Uniphase Corp                    JDSU     Information Technology                 4.8                 (2)
                                             0.0                                1.0                                                           2.0
                                                                 % Daily Avg Trading Turnover                                                             S&P 500 Average                                                                    1.0                 (1)

                                                                                                                                                       Daily average turnover = daily avg. trading value / avg. market cap (over the past 5 trading days).
Daily average turnover = daily avg. trading value / avg. market cap (over the past 5 trading days).

Source: Compustat, FactSet, and Goldman Sachs Global ECS Research.                                                                                     Source: Compustat, FactSet, and Goldman Sachs Global ECS Research.




Goldman Sachs Global Economics, Commodities and Strategy Research                                                                                                                                                                                                      17
April 15, 2011                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      United States



Correlation and Risk
Exhibit 38: S&P 500 stock and sector average correlation                                                                                                                                                                                                       Exhibit 39: Credit Default Swaps, 5-Year On-the-run Spreads
as of April 14, 2011                                                                                                                                                                                                                                           as of April 14, 2011

                         1.0
                                                                                                                                                                                                                                                                                                300                                                                                                                                                                                                                                          1,800
                         0.9                                Average sector correlation
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             1,600
                         0.8                                                                                                                                                                                                                                                                    250                                                                                                                                                               CDX (HY) (rhs)




                                                                                                                                                                                                                                                                   Investment Grade CDX (bps)
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             1,400
   Average Correlation




                         0.7                                                                                                                                                                                                               0.68




                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          High Yield CDX (bps)
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             1,200
                                                                                                                                                                                                                                                                                                200
                         0.6                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 1,000
                         0.5                                                                                                                                                                                                                                                                    150                                                                                                                                                                                                                                          800
                         0.4                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 600
                                                                                                                                                                                                                                           0.33                                                 100
                         0.3                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 400
                         0.2                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 200
                                                                                                                                                                                                                                                                                                 50
                                                                                                                                                                                                                                                                                                                               CDX (IG) (lhs)                                                                                                                                                                                                0
                         0.1
                                                                                                                                                            Average stock correlation
                         0.0                                                                                                                                                                                                                                                                         0                                                                                                                                                                                                                                       (200)




                                                                                                                                                                                                                                                                                                                       Dec-07



                                                                                                                                                                                                                                                                                                                                                       Jun-08
                                                                                                                                                                                                                                                                                                                                                                Aug-08


                                                                                                                                                                                                                                                                                                                                                                                  Dec-08



                                                                                                                                                                                                                                                                                                                                                                                                                Jun-09
                                                                                                                                                                                                                                                                                                                                                                                                                         Aug-09


                                                                                                                                                                                                                                                                                                                                                                                                                                           Dec-09



                                                                                                                                                                                                                                                                                                                                                                                                                                                                           Jun-10
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     Aug-10


                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       Dec-10



                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    Jun-11
                                                                                                                                                                                                                                                                                                             Oct-07


                                                                                                                                                                                                                                                                                                                                Feb-08
                                                                                                                                                                                                                                                                                                                                            Apr-08



                                                                                                                                                                                                                                                                                                                                                                         Oct-08


                                                                                                                                                                                                                                                                                                                                                                                            Feb-09
                                                                                                                                                                                                                                                                                                                                                                                                     Apr-09



                                                                                                                                                                                                                                                                                                                                                                                                                                  Oct-09


                                                                                                                                                                                                                                                                                                                                                                                                                                                       Feb-10
                                                                                                                                                                                                                                                                                                                                                                                                                                                                  Apr-10



                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              Oct-10


                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                Feb-11
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           Apr-11
                               Dec-89
                                        Dec-90
                                                 Dec-91
                                                            Dec-92
                                                                     Dec-93
                                                                              Dec-94
                                                                                         Dec-95
                                                                                                  Dec-96
                                                                                                           Dec-97
                                                                                                                     Dec-98
                                                                                                                              Dec-99
                                                                                                                                       Dec-00
                                                                                                                                                Dec-01
                                                                                                                                                         Dec-02
                                                                                                                                                                  Dec-03
                                                                                                                                                                           Dec-04
                                                                                                                                                                                    Dec-05
                                                                                                                                                                                             Dec-06
                                                                                                                                                                                                      Dec-07
                                                                                                                                                                                                               Dec-08
                                                                                                                                                                                                                         Dec-09
                                                                                                                                                                                                                                  Dec-10
                                                                                                                                                                                                                                           Dec-11
                                                                                                                                                                                                                                                      Dec-12
Source: Goldman Sachs Global ECS Research.                                                                                                                                                                                                                     Source: Goldman Sachs Global ECS Research.

Exhibit 40: S&P 500 Cost of Equity = ERP + 10 Year Treasury Yield                                                                                                                                                                                              Exhibit 41: Risk Barometer and S&P 500 VIX Volatility Index, as of 14-Apr-11
as of April 14, 2011                                                                                                                                                                                                                                           Risk Barometer index is number of standard deviations from the average * 100

                                                                                                                                                                                                                                                                                  100                                                                                                                                                                                                                                                                 500
  10.0
      9.0                                                                                                                                                                                                                                                                                       80                                                                                                                                                                                                                                                    400
                                                                                                                                                                                                                7.9 %
      8.0                                                                                                                                                                                                                                                                                                             Risk Aversion
                                                                                                                                                                                                               Cost of                                                                          60                     Increasing                                                             S&P 500 VIX (LHS)                                                                                                                                       300
      7.0                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         14-Apr-11
                                                                                                                                                                                                               Equity




                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   Risk Barometer
                                                                                                                                                                                                                                                                                                40                                                                                                                                                                                                                                                    200



                                                                                                                                                                                                                                                                S&P 500 VIX
      6.0
                                                                                                                                                                                                                         ERP
      5.0                                                                                                                                                                                                                                                                                       20                                                                                                                                                                                                                                                    100
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         16
      4.0                                                                                                                                                                                                               4.5 %
                                                                                                                                                                                                                                                                                                0                                                                                                                                                                                                                                                     0
      3.0                                                                                                                                                                                                               3.5 %                                                                                                                                                                                                                                                                                                            (46)
                                                                                                                                                                                                                                                                                    (20)                                                                                                                                                                                                                                                              (100)
      2.0                                                                                                                                                                                                    10 Year
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     Risk Aversion
                                                                                                                                                                                                           US Treasury
      1.0                                                                                                                                                                                                                                                                                                                                                                                                                                                                             Decreasing
                                                                                                                                                                                                              Yield                                                                 (40)                                                                                                                                                                                                                                                              (200)

      0.0                                                                                                                                                                                                                                                                                                                                                            Risk Barometer (RHS)
                                                                                                                                                                                                                                                                                    (60)                                                                                                                                                                                                                                                              (300)
                          Dec-07




                                                                                Dec-08




                                                                                                                                       Dec-09




                                                                                                                                                                                             Dec-10




                                                                                                                                                                                                                                                    Dec-11
                                                   Jun-08




                                                                                                            Jun-09




                                                                                                                                                                  Jun-10




                                                                                                                                                                                                                        Jun-11




                                                                                                                                                                                                                                                                                                         Dec-94

                                                                                                                                                                                                                                                                                                                      Dec-95

                                                                                                                                                                                                                                                                                                                                   Dec-96

                                                                                                                                                                                                                                                                                                                                                     Dec-97

                                                                                                                                                                                                                                                                                                                                                                Dec-98

                                                                                                                                                                                                                                                                                                                                                                             Dec-99

                                                                                                                                                                                                                                                                                                                                                                                           Dec-00

                                                                                                                                                                                                                                                                                                                                                                                                       Dec-01

                                                                                                                                                                                                                                                                                                                                                                                                                     Dec-02

                                                                                                                                                                                                                                                                                                                                                                                                                                  Dec-03

                                                                                                                                                                                                                                                                                                                                                                                                                                              Dec-04

                                                                                                                                                                                                                                                                                                                                                                                                                                                                Dec-05

                                                                                                                                                                                                                                                                                                                                                                                                                                                                            Dec-06

                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         Dec-07

                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       Dec-08

                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  Dec-09

                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                Dec-10

                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             Dec-11
We estimate the equity risk premium (ERP) using our DDM framework to model expected future cash                                                                                                                                                                Note: Metrics included are implied option volatility (S&P 500 and NASDAQ 100), normalized skew, high
flows. We solve for the cost of equity that implies the market is at ‘fair value’ and then deduct the 10-year                                                                                                                                                  yield credit spreads, credit derivative swap spreads, mutual fund net flows, and cash levels.
US treasury.

Source: IDC via FactSet, and Goldman Sachs Global ECS Research.                                                                                                                                                                                                Source: IDC via FactSet, and Goldman Sachs Global ECS Research.




Goldman Sachs Global Economics, Commodities and Strategy Research                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          18
April 15, 2011                                                                                                                                                                                                               United States



Goldman Sachs Recommendations and Forecasts
                                                                                     (a)
Exhibit 42: Goldman Sachs Recommended Sector Weightings                                                      Exhibit 43: Goldman Sachs US Economics quarterly GDP forecasts
as of April 14, 2011                                                                                         as of April 14, 2011
                                                           Sector Weightings
                                                                                                                                             5.0 %
                               Total      Goldman Sachs          Current           GS             GS                                                                                                    Goldman Sachs
                                                                                                                                             4.5 %
                              Return      Recommended            S&P 500       Overweight /      Alpha                                                                                                   Economics




                                                                                                             GDP Growth (qoq annualized %)
 Sectors                       YTD       Sector Weightings        Weight       Underweight        YTD                                        4.0 %
 Energy                         13 %                                13 %           200 bp         14 bp                                                      Consensus
                                            Overweight                                                                                       3.5 %
 Information Technology          2                                  18             200            (5)
                                                                                                                                             3.0 %
 Financials                      1                                  16                0           (5)
 Consumer Discretionary          5                                  11                0               0                                      2.5 %
 Industrials                     7             Neutral              11                0               0                                      2.0 %                                 4.0    4.0   4.0   4.0
                                                                                                                                                     3.7                                                     3.5     3.5   3.5
 Materials                       2                                   4                0               0                                                                3.1
                                                                                                                                             1.5 %
 Telecom Services                5                                   3                0               0                                                          2.6         2.5
                                                                                                                                             1.0 %
 Utilities                       2                                   3             (100)              3                                                    1.7
                                            Underweight                                                                                      0.5 %
 Health Care                     7                                  11             (100)          (5)
 Consumer Staples                5                                  11             (200)              0                                      0.0 %
                                                                                                                                                     Q1A Q2A Q3A Q4A Q1E Q2E Q3E Q4E Q1E Q2E Q3E Q4E
 S&P 500                         5%                                100 %              0 bp            2 bp

(a) Sector weightings last rebalanced on April 13, 2011.                                                                                                     2010                    2011                          2012
Source: FactSet and Goldman Sachs Global ECS Research.                                                       Source: Bloomberg and Goldman Sachs Global ECS Research.


Exhibit 44: Goldman Sachs 3-, 6-, and 12-month forecasts                                                     Exhibit 45: Goldman Sachs US Economics forecasts
as of April 14, 2011                                                                                         as of April 14, 2011
                                                       Forecasts                                                                                                                                 % Annual Change
                         units    Current      3m          6m                                   12m                                                                                      2010A         2011E                  2012E
 Equities                                                                                                      Real GDP                                                                   2.9%         3.1%                    3.8%
   S&P 500                level     1315     1375        1425                                  1525
                                                                                                                 Consumer Spending                                                        1.7          3.1                    3.5
   DJStoxx 600            level      277      300         320                                   340
   Asia Pac Ex-Japan      level      498       525        550                                   610              Total Fixed Investment                                                   3.9          6.4                   10.0
   TOPIX                  level      847       850        900                                  1050                  Business Fixed Investment                                            5.7          7.2                    8.7
 Ten Year Rates                                                                                                      Residential Investment                                              (3.0)         2.9                   15.5
   US                       %        3.5      3.5         3.8                                   4.0              Federal Government Spending                                              4.8          1.7                    2.5
   Euroland                 %        3.4      3.3         3.3                                   3.5              Exports of Goods and Services                                           11.7          9.4                    7.8
   Japan                    %        1.3      1.3         1.4                                   1.7              Imports of Goods and Services                                           12.6          6.5                    9.2
 Currencies                                                                                                    Inflation
   Euro / US Dollar      EUR/$     1.45      1.40         1.45                                  1.50
   Sterling / US Dollar    £/$     1.64      1.67         1.73                                  1.79             Producer Price Index                                                    4.2                5.0                  1.3
   US Dollar / Yen         $/¥     83.2     84.00        84.00                                 90.00             Headline CPI                                                            1.7                2.5                  1.6
 Energy                                                                                                          Core CPI                                                                1.0                1.1                  1.0
   WTI Crude Oil          $/bbl   108.70    99.50      100.50                                 103.50             Core PCE                                                                1.3                0.8                  0.8
   NYMEX Nat. Gas $/mmBtu            4.21     3.75     400.00                                   4.25           Unemployment Rate                                                         9.6                8.6                  8.2
 Metals                                                                                                        Fed Funds Rate                                                            0.2                0.2                  0.2
   London Gold          $/troy oz   1472     1480        1565                                  1690            2-year Treasury Rate                                                      0.6                1.0                  2.0
   LME Copper             $/mt      9410     9300        9600                                 11000
                                                                                                               10-year Treasury Rate                                                     3.3                3.8                  4.3
Source: FactSet and Goldman Sachs Global ECS Research.                                                       Source: Goldman Sachs Global ECS Research.




Goldman Sachs Global Economics, Commodities and Strategy Research                                                                                                                                                                      19
April 15, 2011                                                                                                                                                                                    United States



Goldman Sachs Strategy Baskets
US Portfolio Strategy baskets are designed to provide portfolio managers with vehicles to monitor and implement thematic views in the U.S. equity markets. Our
baskets may be found on Bloomberg by typing <GSTH>. The Bloomberg page provides real-time basket performance and current basket constituents. To obtain
access to our baskets on Bloomberg, please contact your Goldman Sachs salesperson.
Exhibit 46: Strategy basket performance and average valuation data                           Exhibit 47: Strategy basket total return performance over the last week
as of April 14, 2011                                                                         last week % total return, as of April 14, 2011
                              Bloomberg          Total Return %       P/E   P/B    Div Yld       Global Defensives <GSSBGDEF>                                                                              0.6
                              Ticker           1 wk     1 mo   YTD    NTM   LTM      (%)       Domestic Defensives <GSSBDDEF>                                        (0.3)
                                                                                                         Strong B/S <GSTHSBAL>                                   (0.6)
    Macroeconomic Baskets
                                                                                                  Low Op Leverage <GSTHOPLO>                                    (0.6)
    International Sales       GSTHINTL         (2)%      1%    6%     18x   5.0x    1.3 %             Low HF Conc <GSTHHFSL>                              (1.0)
                                                                                                             GARP <GSTHGARP>                             (1.0)
    US Sales                  GSTHAINT         (1)       2     7      18    3.0     1.7
                                                                                                      ROE Growth <GSTHGROE>                             (1.1)
    Western Europe Sales      GSTHWEUR         (2)       3     9      20    3.9     0.9                    US Sales <GSTHAINT>                     (1.4)
    BRICs Sales               GSTHBRIC         (2)       3     6      16    4.3     1.0                                   S&P 500                  (1.4)
    Dual Beta                 GSTHBETA         (2)       1     8      19    3.2     0.6             Hedge Fund VIP <GSTHHVIP>                   (1.6)
                                                                                                  High Op Leverage <GSTHOPHI>                (1.8)
    Fundamental Baskets                                                                                  Weak B/S <GSTHWBAL>                (1.8)
                                                                                              Western Europe Sales <GSTHWEUR>             (2.0)
    ROE Growth                GSTHGROE         (1)%      4%    8%     17x   4.4x    1.4 %             High HF Conc <GSTHHFHI>             (2.0)
    High Op Leverage          GSTHOPHI         (2)       4     8      17    3.0     1.2             Dividend Growth <GSTHDIVG>           (2.0)
    Low Op Leverage           GSTHOPLO         (1)       1     6      17    4.9     1.4                  BRIC Sales <GSTHBRIC>           (2.0)
                                                                                                           Int'l Sales <GSTHINTL>       (2.1)
    Strong Balance Sheet      GSTHSBAL         (1)       3     6      19    5.9     0.9
                                                                                                          Dual Beta <GSTHBETA>     (2.4)
    Weak Balance Sheet        GSTHWBAL         (2)       3     8      17    2.9     1.8         Domestic Cyclicals <GSSBDCYC>     (2.4)
                                                                                                   Global Cyclicals <GSSBGCYC> (2.6)
    Uses of Cash Baskets
                                                                                                 High Sharpe Ratio <GSTHSHRP> (2.6)
    Dividend Growth           GSTHDIVG         (2)%      3%    8%     13x   3.6x    2.7 %
                                                                                                                                          (3)              (2)             (1)                0                  1
    Hedge Fund Baskets
                                                                                             Source: FactSet and Goldman Sachs Global ECS Research.
    High HF Concentration     GSTHHFHI         (2)%      3%    10 %   18x   3.4x    0.3 %
    Low HF Concentration      GSTHHFSL         (1)       1     3      17    3.8     2.7      Exhibit 48: US Portfolio Strategy thematic trade recommendations
    Hedge Fund VIP            GSTHHVIP         (2)       3     5      17    5.0     1.0      as of April 14, 2011
    Valuation Baskets                                                                                                           Thematic Trade Recommendations
                                                                                                                                                                                     Initiation       Weekly
    GARP                      GSTHGARP         (1)%      2%    6%     16x   4.8x    0.8 %
                                                                                                                                                                                   Date      Return   Return
    High Sharpe Ratio         GSTHSHRP         (3)       1     8      13    2.6     1.5
                                                                                               BUY BRIC Sales Basket (GSTHBRIC); SELL S&P 500
    Sector Baskets                                                                               See Portfolio Passport: US Stocks for a Growth Market World (12-Apr-11)         12-Apr-11   (0.0)%    -
    Global Cyclicals          GSSBGCYC         (3)%       1%   7%     17x   3.9x    1.2 %      BUY ROE Growth Basket (GSTHGROE); SELL S&P 500
                                                                                                 See 2011 Outlook: Easy Money, Hard Market (1-Dec-10)                            1-Dec-10     1.7 %     0.3 %
    Global Defensives         GSSBGDEF          1         4    4      17    5.8     1.6
                                                                                               BUY Cyclicals Basket; SELL Defensives Basket
    Domestic Cyclicals        GSSBDCYC         (2)       (1)   4      15    2.6     1.7
                                                                                                 See 2011 Outlook: Easy Money, Hard Market (1-Dec-10)                            1-Dec-10     3.7 %    (2.7)%
    Domestic Defensives       GSSBDDEF         (0)        4    5      16    2.9     2.3
                                                                                               BUY High Sharpe Ratio Basket (GSTHSHRP); SELL S&P 500
    S&P 500                                    (1)%      2%     5%    13x   2.4x    1.9 %        See 2010 Outlook: Cyclical start; defensive finish (7-Dec-09).                  7-Dec-09    20.8 %    (1.2)%
    S&P 500 Average                                                   16    3.9     1.7
                                                                                             Results presented should not and cannot be viewed as an indicator of future performance. Further details
    S&P 500 Median                                                    15    2.7     1.5      on performance calculations can be provided upon request.
Source: FactSet and Goldman Sachs Global ECS Research.                                       Source: FactSet and Goldman Sachs Global ECS Research.




Goldman Sachs Global Economics, Commodities and Strategy Research                                                                                                                                                    20
April 15, 2011                                                                                                                                                                                                             United States



Constituents of the BRICs Sales Basket <GSTHBRIC>
Exhibit 49: BRICs Sales Basket, as of April 14, 2011
                                                                                                             Explicit                                                                                                             Explicit
                                                                                                              BRICs                                                                                                                BRICs
                                                               Sales           Asia      South    Eastern    Country                                                                Sales          Asia       South    Eastern    Country
  Company                        Ticker   Rating      Non-US       BRICs    ex. Japan   America   Europe    Exposure      Company                          Ticker   Rating    Non-US    BRICs    ex. Japan   America   Europe    Exposure
Information Technology                                                                                                  Consumer Staples
  Broadcom Corporation           BRCM     Buy*         97 %          93 %      93 %        0%        0%       56 %       Central European Distribution     CEDC     NC        100 %       92 %       0%         0%       92 %       58 %
  Genpact Ltd.                   G        Neutral      92            81        81          0         0        73         Avon Products                     AVP      Sell       84         59         2         42        15         22
  Skyworks Solutions Inc.        SWKS     NC           89            77        77          0         0        59         Bunge Ltd.                        BG       NC         77         40        13         26         0         20
  Applied Materials              AMAT     Buy          88            70        70          0         0        16         Philip Morris Intl                PM       Buy*      100         29        29          0         0         NA
  QUALCOMM Inc.                  QCOM     Buy*         95            68        68          0         0        30         Colgate-Palmolive                 CL       Neutral    77         27         0         27         0         NA
  Novellus Systems               NVLS     Neutral      76            63        63          0         0        40
  Varian Semiconductor Equip.    VSEA     Buy          85            62        62          0         0        NA          Basket median                                        84 %       40 %       2%        26 %       0%
  Texas Instruments              TXN      Not Rated    88            62        62          0         0         3          Sector median                                        24          0         0          0         0
  KLA-Tencor Corp.               KLAC     Neutral      81            62        62          0         0        NA
                                                                                                                        Consumer Discretionary
  Basket median                                        88 %          68 %      68 %        0%        0%                  Central European Media Ent.       CETV     Neutral   100 %      100 %       0%         0%      100 %       NA
  Sector median                                        52             0         0          0         0                   Las Vegas Sands Corp.             LVS      Neutral    78         78        78          0         0         60
                                                                                                                         Wynn Resorts                      WYNN     Neutral    69         69        69          0         0         69
Financials                                                                                                               Yum! Brands, Inc                  YUM      Neutral    64         36        36          0         0         36
  Citigroup Inc.                 C        Neutral      46 %          32 %      17 %       15 %       0%       NA         Whirlpool Corp.                   WHR      Buy        56         30         5         25         0         18
  Morgan Stanley                 MS       Neutral      31            14        14          0         0        NA
  White Mountains Insurance      WTM      NC           54             9         9          0         0        NA          Basket median                                        69 %       69 %      36 %        0%        0%
  MBIA Inc.                      MBI      NC           22             7         1          6         0        NA          Sector median                                        22          0         0          0         0
  Weyerhaeuser Corp.             WY       Neutral      32             7         5          1         0         5
  ACE Limited                    ACE      NC           39             6         0          6         0        NA        Materials
  Bank of America Corp.          BAC      Buy          21             6         6          0         0        NA         Schnitzer Steel Industries Inc.   SCHN     Neutral    69 %       53 %      53 %        0%        0%        NA
  Greenhill & Co.                GHL      Sell         38             4         4          0         0        NA         Newmont Mining Corp.              NEM      NC         78         44        26         19         0         NA

  Basket median                                        35 %          7%         5%         1%        0%                   Basket median                                        73 %       49 %      40 %        9%        0%
  Sector median                                         5            0          0          0         0                    Sector median                                        49          8         0          0         0

Energy                                                                                                                  Telecommunication Services
  Diamond Offshore Drilling      DO       Buy*         81 %          49 %       9%        39 %       0%       37 %        NII Holdings Inc.                NIHD     Buy       100 %       62 %       0%        62 %       0%        46 %
  Schlumberger Ltd.              SLB      Buy          76            37        21         16         0        NA
  Atwood Oceanics Inc.           ATW      Neutral      98            29        29          0         0        NA          Basket median                                       100 %       62 %       0%        62 %       0%
  National Oilwell Varco         NOV      Neutral      66            26        26          0         0        NA          Sector median                                         0          0         0          0         0
  Newfield Exploration Co.       NFX      Buy          24            24        24          0         0         3
  Noble Corp.                    NE       Buy          80            24         5         19         0        23        Utilities
  McDermott International Inc.   MDR      NC           95            21        19          2         0         3          AES Corp.                        AES      NC         84 %       69 %       1%        63 %       5%        39 %

  Basket median                                        80 %          26 %      21 %        2%        0%                   Basket median                                        84 %       69 %       1%        63 %       5%
  Sector median                                        24             0         0          0         0                    Sector median                                         0          0         0          0         0

Industrials
  Copa Holdings S.A. (Cl A)      CPA      NC           86 %          71 %       0%        71 %       0%       NA
  Expeditors Int'l               EXPD     NC           77            38        37          1         0        37
  Avery Dennison Corp.           AVY      NC           68            31        23          7         0        NA
  AGCO Corp.                     AGCO     Neutral      83            30         2         28         0        NA
  Emerson Electric               EMR      Buy          57            28        23          5         0        13
  Cummins Inc.                   CMI      Buy*         64            23        15          8         0        23

  Basket median                                        72 %          30 %      19 %        8%        0%
  Sector median                                        31             0         0          0         0

Health Care
  Waters Corporation             WAT      Buy          70 %          21 %      21 %        0%        0%       NA
  Pfizer, Inc.                   PFE      Buy          57            18         0          0         0        NA
  Mettler-Toledo International   MTD      Neutral      71            15        15          0         0        15
  Mylan Laboratories             MYL      Buy*         51            14        14          0         0        NA
  Agilent Technologies           A        Neutral      68            14        14          0         0        14
  BioMarin Pharmaceutical Inc.   BMRN     NC           47            11         0         11         0        NA

  Basket median                                        62 %          15 %      14 %        0%        0%                   GSTHBRIC median                                      76 %      31 %       16 %        0%        0%
  Sector median                                        35            0          0          0         0                    S&P 500 median                                       28         0          0          0         0
Source: Company filings, Worldscope, Compustat, and Goldman Sachs Global ECS Research.




Goldman Sachs Global Economics, Commodities and Strategy Research                                                                                                                                                                        21
April 15, 2011                                                                                                                                                     United States



Recent US Portfolio Strategy Publications
                                    Please contact your Goldman Sachs salesperson for access to additional research or if you wish to be added to the US Portfolio
                                    Strategy research distribution list.

Exhibit 50: Recent research from US Portfolio Strategy

 Latest Market Research                                                                                                                  Publication Date
 US Sector Views: Shift sector weights closer to benchmark on balanced risk-reward                                                       April 14, 2011
 US Equity Views: New 3-, 6-, and 12-month targets reflect 5%, 8% and 16% returns                                                        April 13, 2011
 US Thematic Views: GARP Update                                                                                                          April 1, 2011
 US Equity Views: 4Q earnings season preview: We expect margins will hit a new high                                                      January 18, 2011
 US Equity Views: Raising EPS forecasts again; 19% return to our new target of 1500                                                      January 7, 2011
 US Portfolio Strategy 2011 Outlook: Easy money, hard market                                                                             December 1, 2010

 Recent US Weekly Kickstart: "Conversations we are having with clients"                                                                  Publication Date
 The great margin mathematics debate and 1Q earnings season calendar                                                                     April 8, 2011
 S&P 500 rises 5% in Q1 and investors’ focus shifts to the impact of higher interest rates                                               April 1, 2011
 We remain positive growth-sensitive US equities ahead of key macro data period                                                          March 25, 2011
 Japan impact on equities and economic growth; US Financials “2nd stress test"                                                           March 18, 2011
 Improving equity fundamentals vs. oil price shock fears                                                                                 March 11, 2011
 S&P 500 returns during oil price shocks since 1970 suggest share prices likely to rise further                                          March 4, 2011

 Franchise Research                                                                                                                      Publication Date
 Portfolio Passport: US stocks for a growth market world                                                                                 April 12, 2011
 Global Dividend Swap Monitor: Assessing risks and entry opportunities for global dividend swaps                                         March 21, 2011
 Portfolio Strategy: GOAL: Global Opportunity Asset Locator                                                                              April 15, 2011
 Portfolio Strategy: The anatomy of ROE: Part 2: S&P 500 Sectors                                                                         November 11, 2010
 Portfolio Strategy: The anatomy of ROE: Part 1: S&P 500                                                                                 July 22, 2010
 Portfolio Strategy: Revisiting our BRICs Nifty 50 baskets                                                                               May 7, 2010

 Periodical Research                              Description                                                                Frequency   Timing / Recent Release
 Hedge Fund Trend Monitor                         Analysis of hedge fund holdings and positioning                            Quarterly   February 18, 2011
 S&P 500 Beige Book                               Qualitative assessment of S&P 500 quarterly earnings reports               Quarterly   February 3, 2011
 Strategy Baskets                                 Overview of US Portfolio Strategy thematic baskets                         Quarterly   December 21, 2010
 US Monthly Chartbook                             Monthly report on where to invest in the S&P 500                           Monthly     April 4, 2011
 US Weekly Kickstart                              Five minute guide to the US equity market                                  Weekly      Friday PM
 Where to Invest Now                              Marketing presentation highlighting recent research and best trade ideas   Monthly     March 8, 2011

Source: Goldman Sachs Global ECS Research.



Goldman Sachs Global Economics, Commodities and Strategy Research                                                                                                            22
April 15, 2011                                                                                                                                                United States




Equity basket disclosure
                                  The Equities Division of the firm has previously introduced the basket of securities discussed in this report. The Equity Analyst may
                                  have been consulted as to the composition of the basket prior to its launch. However, the views expressed in this research and its
                                  timing were not shared with the Equities Division.

                                  Rating and pricing information
                                  Agilent Technologies (N/N, $46.63), ALCOA (N/N, $16.55), Apple Inc. (B/N, $332.42), Abbott Laboratories (N/N, $51.00), American
                                  Electric Power (N/C, $35.17), AGCO Corp. (N/N, $51.43), (AK Steel Holding (S/N, $15.44), Applied Materials, Inc. (B/N, $14.78),
                                  Advanced Micro Devices, Inc. (S/N, $8.19), Amgen Inc. (S/C, $54.83), AutoNation, Inc. (S/A, $32.36), Anadarko Petroleum Corp. (N/A,
                                  $79.38), Air Products & Chemicals Inc. (N/A, $90.57), Amphenol Corp. (N/A, $52.45), Apollo Group Inc. (B/N, $39.96), Atwood
                                  Oceanics, Inc. (N/A, $42.62), Avon Products, Inc. (S/N, $28.21), Bank of America Corporation (B/A, $13.13), Baxter International, Inc.
                                  (B/N, $53.77), BB&T Corp. (S/N, $26.46), C.R. Bard Inc. (N/N, $101.24), Biogen Idec, Inc. (S/C, $82.19), Bank of New York Mellon Corp.
                                  (N/N, $29.79), BlackRock, Inc. (N/N, $193.38), Ball Corporation (N/N, $36.44), Broadcom Corporation (B/N, $38.15), Boston Scientific
                                  Corp. (S/N, $7.13), Peabody Energy Corp. (N/N, $65.76), Citigroup Inc. (N/A, $4.43), Chubb Corp. (B/N, $61.69), CB Richard Ellis Group
                                  Inc. (N/N, $28.26), Central European Distribution Corporation (B/N, $10.39), Central European Media Enterprises (N/A, $21.23), CF
                                  Industries Holdings, Inc. (S/N, $133.69), Colgate-Palmolive Company (N/N, $81.84), Comerica, Inc. (N/N, $38.02), Cummins Inc. (B/N,
                                  $105.32), Cabot Oil & Gas Corp. (B/A, $52.56), Coach, Inc. (N/N, $54.42), Rockwell Collins Corp. (N/A, $62.14), ConocoPhillips (N/A,
                                  $78.28), Covidien plc (B/N, $52.80), CSX Corporation (B/N, $76.11), CenturyLink Inc. (B/N, $40.00), Chevron Corp. (N/A, $104.88), E.I.
                                  duPont de Nemours (NR, $54.11), Dean Foods Company, (N/A, $9.88), Quest Diagnostics Incorporated (S/N, $57.76), Danaher Corp.
                                  (NR, $51.92), Diamond Offshore Drilling (B/A, $75.69), Dover Corp. (B/A, $64.35), The Estee Lauder Companies Inc. (N/N, $94.95),
                                  EMC Corporation (B/N, $26.63), Emerson Electric Co. (B/A, $57.41), El Paso Corp. (N/N, $18.26), Express Scripts, Inc. (N/A, $55.10),
                                  E*TRADE Financial Corp. (N/N, $15.67), Eaton Corp. (B/A, $52.37), Edwards Lifesciences Corp. (N/N, $83.90), Expedia Inc. (N/N,
                                  $23.65), Freeport-McMoRan Copper & Gold (B/N, $51.93), F5 Networks, Inc. (S/N, $96.17), First Horizon National Corp. (N/N, $10.90),
                                  Fifth Third Bancorp (N/N, $13.65), Fluor Corp. (N/A, $66.82), Forest Laboratories, Inc. (N/N, $33.75), Genpact Ltd. (N/A, $15.60),
                                  General Electric Co. (B/A, $20.00), Greenhill & Co., Inc. (S/N, $59.67), Gilead Sciences Inc. (N/C, $41.85), GameStop Corp. (N/N,
                                  $25.41), Goodrich Corp. (N/A, $84.36, W.W. Grainger Inc. (N/A, $142.24), Halliburton Company (B/A, $46.14), Huntington Bancshares
                                  Inc. (B/N, $6.50), Hess Corp. (N/A, $79.65), The Hartford Financial Services (N/A, $26.39), Harley-Davidson), Inc. (N/A, $40.47),
                                  Honeywell International Inc. (N/A, $57.50), International Business Machines (N/N, $164.97), International Game Technology (S/C,
                                  $15.57), Intel Corp. (N/N, $19.58), Ingersoll-Rand PLC (N/A, $46.72), Intuitive Surgical, Inc. (S/N, $363.32), Johnson & Johnson (N/N,
                                  $60.02), Juniper Networks, Inc. (B/N, $38.49), Janus Capital Group Inc. (N/N, $12.07), KeyCorp (N/N, $8.75), KLA-Tencor (N/N, $42.48),
                                  Lennar Corp. (N/N, $18.15), Laboratory Corporation of America Holdings (N/N, $95.06), L-3 Communications Holdings Inc. (S/C,
                                  $75.43), Linear Technology Corp. (N/N, $32.87), Eli Lilly & Company (S/N, $35.75), Lorillard, Inc. (B/N, $100.38), Limited Brands, Inc.
                                  (S/N, $37.67), Las Vegas Sands Corp. (N/N, $44.60), Lexmark International Group (N/N, $35.65), Marriott International (N/A, $34.06),
                                  McDonald's Corp. (N/A, $77.07), Massey Energy Co. (N/N, $63.00), Motorola Mobility Holdings Inc. (B/N, $23.22), Altria Group, Inc.
                                  (N/N, $26.89), Morgan Stanley & Co. (N/A, $26.79), Mettler-Toledo International Inc. (N/N, $169.81), Murphy Oil Corp. (N/A, $73.67),
                                  Mylan Inc. (B/N, $23.17), NASDAQ OMX Group Inc. (NR, $27.81), Noble Corporation (B/A, $42.73), Netflix), Inc. (B/A, $236.73),
                                  Newfield Exploration (B/A, $70.18), NII Holdings (B/N, $38.73), National Oilwell Varco (N/A, $76.00), National Semiconductor Corp.
                                  (NR, $24.11), NetApp, Inc. (N/N, $48.42), Northern Trust Corp. (N/N, $51.63), Nucor Corp. (N/N, $44.97), Nvidia Corp. (N/N, $18.51),


Goldman Sachs Global Economics, Commodities and Strategy Research                                                                                                       23
April 15, 2011                                                                                                                                                United States


                                  Novellus Systems Inc. (N/N, $33.87), Omnicom Group Inc. (N/A, $48.02), Paccar Inc. (N/N, $50.00), Pfizer Inc. (B/N $20.49), ProLogis
                                  (S/N, $15.89), Philip Morris International Inc. (B/N, $66.19), PNC Financial Services (N/A, $61.87), PPG Industries, Inc. (B/A, $92.49),
                                  PPL Corporation (B/C, $26.75), Quanta Services, Inc. (N/A, $20.93), QUALCOMM, Inc. (B/N, $52.60), Reynolds American Inc. (S/N,
                                  $36.43), Regions Financial Corp. (N/N, $7.24), Sprint Nextel Corp. (N/N, $4.96), Schnitzer Steel Industries (N/N, $59.94), Sherwin-
                                  Williams Company (N/A, $84.30), Schlumberger, Ltd. (B/A, $86.02), SunTrust Banks, Inc. (N/N, $28.19), St. Jude Medical, Inc. (N/N,
                                  $52.20), State Street Corp. (B/N, $45.15), Stryker Corp. (N/N, $59.87), AT&T Inc. (N/N, $30.29), Teradyne, Inc. (B/N, $16.88), Tenet
                                  Healthcare Corp. (NR, $6.60), T. Rowe Price Group, Inc. (B/N, $66.56), The Travelers Companies), Inc. (S/N, $59.63), Tesoro Corp.
                                  (N/N, $26.13), Texas Instruments Inc. (NR, $34.71), Textron Inc. (B/A, $26.27), Tyco International Ltd. (N/A, $51.94), UnitedHealth
                                  Group (N/A, $44.82), Union Pacific Corporation (N/N, $97.39), U.S. Bancorp (N/A, $25.84), United Technologies Corp. (B/A, $83.98),
                                  Valero Energy Corp. (S/N, $27.60), Vulcan Materials Company (S/N, $43.45), Varian Semi Equipment Assoc. (B/N, $43.39), Verizon
                                  Communications (B/N, $37.71), Waters Corporation (B/N, $87.20), Western Digital Corp. (NR, $38.38), Wells Fargo & Company (B/A,
                                  $30.15), Whirlpool Corporation (B/N, $84.74), Weyerhaeuser Co. (N/N, $22.49), Wynn Resorts, Limited (N/N, $134.96), U.S. Steel
                                  Group (B/N, $50.85), XL Group Plc (B/N, $24.37), Xerox Corp. (N/N, $10.75), Yahoo! Inc. (N/A, $16.69), Yum! Brands, Inc. (N/A, $50.68),
                                  Zions Bancorporation (N/N, $23.44).




Goldman Sachs Global Economics, Commodities and Strategy Research                                                                                                       24
April 15, 2011                                                                                                                                                                                United States



Reg AC
We, David J. Kostin, Stuart Kaiser, CFA, Amanda Sneider, CFA and Yi Zhang, hereby certify that all of the views expressed in this report accurately reflect our personal views about the subject
company or companies and its or their securities. We also certify that no part of our compensation was, is or will be, directly or indirectly, related to the specific recommendations or views expressed
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Goldman Sachs Global Economics, Commodities and Strategy Research                                                                                                                                           25
April 15, 2011                                                                                                                                                                                      United States

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Goldman Sachs Global Economics, Commodities and Strategy Research                                                                                                                                               26

				
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