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					July 1, 2011                                                                                                                                                                                  United States
July 1, 2011




United States

US Weekly Kickstart
                                                                                                                                                                   Portfolio Strategy Research

Flat 2Q return leaves S&P 500 up 6% YTD; we expect EPS growth will drive return in 2H
S&P 500 ended 2Q almost unchanged from the start of April, but has returned 6% YTD. Looking back, Health Care was the major
surprise, surging 14% YTD followed by Energy at 11%. Financials was the only sector to post a negative return, falling 3%. Large-
caps lagged with S&P 100 returning 5% and Russell 2000 advancing 6%. Looking ahead, macro uncertainty abounds in Europe
(sovereign debt), Japan (earthquake recovery), China (inflation pressures), and US (debt ceiling and budget negotiations). However,
at the micro level we expect S&P 500 EPS will establish a new high of $96 and lift the index to 1450, a return of 10% in 2H.

Performance                                                        Sector views and performance
                                                                                                                                                        David J. Kostin
The S&P 500 rose 2.9% this week. Materials was                     Our recommended sector weighting lost 1 bp this
                                                                                                                                                        (212) 902-6781 david.kostin@gs.com
the best-performing sector (+4.4%) while Health                    week, and have generated -24 bp of alpha YTD.                                        Goldman Sachs & Co.
Care was the worst-performing sector (+1.2%). We
expect the S&P 500 to rise to 1450 by year end                     US Portfolio Strategy Baskets                                                        Stuart Kaiser, CFA
(+10%) and 1500 in 12 months (+14%).                                                                                                                    (212) 357-6308 stuart.kaiser@gs.com
                                                                   Our recommended trades vs. the SPX: High
                                                                                                                                                        Goldman Sachs & Co.
                                                                   Revenue Growth <GSTHREVG> was up 0.8%,
S&P 500 Earnings                                                   BRICs Sales <GSTHBRIC> was up 0.6%, ROE                                              Amanda Sneider, CFA
Our top-down EPS forecasts of $96 and $104 for                     Growth <GSTHGROE> was up 0.6%, and High                                              (212) 357-9860 amanda.sneider@gs.com
2011 and 2012 reflect +15% and +9% growth,                         Sharpe ratio <GSTHSHRP> was down 0.4%.                                               Goldman Sachs & Co.
respectively. Bottom-up consensus forecasts an
                                                                                                                                                        Ben Snider
17% increase in 2011 to $98, and a 15% increase                    S&P 500 stock performance this week                                                  (212) 357-1744 ben.snider@gs.com
in 2012 to $113.                                                   Leaders: DFS, V, FTI, MA, and EBAY                                                   Goldman Sachs & Co.
                                                                   Laggards: MU, MMI, URBN, SNDK, and FHN
Valuation                                                                                                                                               Yi Zhang
                                                                                                                                                        (212) 357-6003 yi.g.zhang@gs.com
Top-down, S&P 500 trades at an NTM P/E of                          GIR Launches iPad App for Research reports                                           Goldman Sachs & Co.
13.2X. Bottom-up, it trades at an NTM P/E of 12.8X                 GIR is providing a new way for clients to access
and an LTM P/B of 2.3X.                                            research. The iPad app is available in the iTunes
                                                                   store by searching “Goldman Sachs Research.”


Goldman Sachs 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 see the end of the text. For other important disclosures, see the
Disclosure Appendix, 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
July 1, 2011                                                                                                                                                                                                                                                                                                                United States



S&P 500 Performance
Exhibit 1: S&P 500 sector performance over the last week                                                                     Exhibit 2: S&P 500 price return and daily trading volume
as of June 30, 2011                                                                                                          as of June 30, 2011

                                                                                                                                                     1,500                                                                                                                                                                             7
               Materials                                                                                        4.4
                                                                                                                                                     1,400                      S&P 500         S&P 500 daily price level (lhs)
                 Energy                                                                                   4.1                                                            200-day moving average                                                                                                                                        6
                                                                                                                                                     1,300




                                                                                                                                                                                                                                                                                                                                           Shares traded (billions)
   Cons Discretionary                                                                        3.5                                                                                                                                                                                                                                       5




                                                                                                                               S&P 500 Price Level
                                                                                                                                                     1,200
              Financials                                                                    3.4
                                                                                                                                                     1,100                                                                                                                                                                             4
              Industrials                                                                   3.3
                                                                                                                                                     1,000                                                                                                                                                                             3
      Information Tech                                                                3.1
                                                                                                                                                      900
               S&P 500                                                            2.9                                                                                                                                                                                                                                                  2
                                                                                                                                                      800
    Telecom Services                                                      2.5                                                                                                                                                                                                                                                          1
                                                                                                                                                      700                                  S&P 500 daily trading volume (rhs)
                 Utilities                                               2.4
                                                                                                                                                      600                                                                                                                                                                              0
    Consumer Staples                                    1.4




                                                                                                                                                                                       31-Oct-09




                                                                                                                                                                                                                             30-Apr-10




                                                                                                                                                                                                                                                                  31-Oct-10




                                                                                                                                                                                                                                                                                                         30-Apr-11
                                                                                                                                                                           31-Aug-09




                                                                                                                                                                                                   31-Dec-09




                                                                                                                                                                                                                                                      31-Aug-10




                                                                                                                                                                                                                                                                               31-Dec-10
                                                                                                                                                             30-Jun-09




                                                                                                                                                                                                                                         30-Jun-10




                                                                                                                                                                                                                                                                                                                           30-Jun-11
                                                                                                                                                                                                                 28-Feb-10




                                                                                                                                                                                                                                                                                            28-Feb-11
             Health Care                           1.2

                             0.0            1.0               2.0               3.0                4.0                 5.0
                                                         1-week Total Return (%)


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


Exhibit 3: S&P 500 sector performance over time                                                                              Exhibit 4: BEST and WORST performing S&P 500 STOCKS BY SECTOR
as of June 30, 2011                                                                                                          as of June 30, 2011

                                                  Total Return Percentage Change (%)                                                                                                                           BEST STOCKS                                                                 WORST STOCKS
                                   1-Week   1-Month           3-Month          6-Month            YTD       12-Month                                                                                                 Return (%)                                                                  Return (%)
 Health Care                         1%           0%                8%           14 %              14 %           29 %        Sector                                                    Ticker                          1-week                       YTD                  Ticker                        1-week                         YTD
                                                                                                                              Cons Discr                                                NKE                                      9%                     6%                URBN                                       (4)%              (21)%
 Energy                              4            (1)           (5)              11                11             53
                                                                                                                              Consumer Staples                                          SVU                                      7                    (0)                 MO                                         (2)                10
 Utilities                           2            1                 6             9                9              24
                                                                                                                              Energy                                                    FTI                                  11                         1                 DVN                                        2                       1
 Cons Discretionary                  3            0                 3             8                8              41
                                                                                                                              Financials                                                DFS                                  12                       45                  FHN                                        (3)               (19)
 Industrials                         3            0             (0)               8                8              38
                                                                                                                              Health Care                                               MYL                                      8                    17                  BSX                                        (3)                   (9)
 Consumer Staples                    1            (2)               5             8                8              27          Industrials                                               JOYG                                     9                    10                  MAS                                        (3)                   (4)
 Telecom Services                    2            (1)               2             7                7              39          Info Tech                                                 V                                    12                       20                  MU                                 (11)                          (7)
 Materials                           4            1             (0)               4                4              45          Materials                                                 MON                                      9                      5                 SHW                                        (1)                     1
 Information Tech                    3            (1)           (2)               2                2              26          Telecom Services                                          S                                        7                    27                  AMT                                        (0)                     1
 Financials                          3            (2)           (6)              (3)               (3)            13          Utilities                                                 NRG                                      6                    26                  ETR                                        0                     (1)
   S&P 500                           3%           (1)%          (0)%              6%               6%             31 %                 S&P 500                                          DFS                                  12 %                     45 %                MU                                 (11)%                         (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                                                                                                                                                                                                                                                                                                     2
July 1, 2011                                                                                                                                                                                    United States



S&P 500 Performance (cont’d)
Exhibit 5: TOP 10 performing SUB-SECTORS over the last week                                                 Exhibit 6: BOTTOM 10 performing SUB-SECTORS over the last week
as of June 30, 2011                                                                                         as of June 30, 2011

                                   Footwear                                                           9                               Tobacco                                                           (0)
                 Diversified Metals & Mining                                                  8                                           Gold                                                          (0)
               Home Entertainment Software                                                    8               Specialized Consumer Services                                                       (0)
                   Motorcycle Manufacturers                                               7                            Construction Materials                                                   (0)
       Fertilizers & Agricultural Chemicals                                           7                                          Homebuilding                                         (1)
                          Casinos & Gaming                                        7                            Computer & Electronics Retail                                         (1)
                    Auto Parts & Equipment                                        6                                                   Brewers                                       (1)
                             Tires & Rubber                                    6                                        Health Care Facilities                                     (1)
                            Cable & Satellite                                 6                                  General Merchandise Stores                                (1)
  Data Processing & Outsourced Services                                       6                                              Building Products     (3)

                                                0     1     2 3 4 5 6 7                   8       9    10                                        (3)               (2)             (1)                        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 7: TOP 10 performing S&P 500 STOCKS over the last week                                              Exhibit 8: BOTTOM 10 performing S&P 500 STOCKS over the last week
as of June 30, 2011                                                                                         as of June 30, 2011

                                                                               Return (%)                                                                                                Return (%)
 Company Name                        Ticker         Sector                 1-week                 YTD        Company Name                        Ticker     Sector                 1-week             YTD
 Discover Financial Services         DFS            Financials                 12                     45     Micron Technology                   MU         Info Tech                 (11)                (7)
 Visa Inc                            V              Info Tech                  12                     20     Motorola Mobility Holdings Inc.     MMI        Info Tech                     (6)            (24)
 FMC Technologies                    FTI            Energy                     11                     1      Urban Outfitters                    URBN       Cons Discr                    (4)            (21)
 Mastercard                          MA             Info Tech                  10                     35     SanDisk Corp.                       SNDK       Info Tech                     (3)            (17)
 eBay Inc.                           EBAY           Info Tech                  10                     16     First Horizon National              FHN        Financials                    (3)            (19)
 NIKE Inc.                           NKE            Cons Discr                    9                   6      Masco Corp.                         MAS        Industrials                   (3)             (4)
 Monsanto Co.                        MON            Materials                     9                   5      Boston Scientific                   BSX        Health Care                   (3)             (9)
 AK Steel                            AKS            Materials                     9                   (3)    Life Technologies Corp              LIFE       Health Care                   (2)             (6)
 National Oilwell Varco              NOV            Energy                        9                   17     Lennar Corp                         LEN        Cons Discr                    (2)             (3)
 Joy Global Inc.                     JOYG           Industrials                   9                   10     Kohl's Corp.                        KSS        Cons Discr                    (2)             (7)
   S&P 500 Average                                                                3                   8        S&P 500 Average                                                             3              8


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



Goldman Sachs Global Economics, Commodities and Strategy Research                                                                                                                                                 3
July 1, 2011                                                                                                                                                                                                       United States



Earnings and Sales
Exhibit 9: EARNINGS GROWTH: S&P 500 bottom-up consensus estimates                                       Exhibit 10: SALES GROWTH: S&P 500 bottom-up consensus estimates
as of June 30, 2011                                                                                     as of June 30, 2011
                                2011E Earnings Per Share Growth                      Annual                                                 2011E Sales Per Share Growth                                       Annual
                                    1QA         2QE        3QE      4QE           2011E 2012E                                               1QA                2QE            3QE          4QE           2011E 2012E
 Energy                              30         41          53       40             41          10       Energy                              23                 41             39           40            36     4
 Materials                           53         43          31       19             37          11       S&P 500                              11               13              13          12              12             5
 Information Technology              27         15          14       15             17          13       Materials                            14               11               9          10              11             6
 S&P 500                             16         14          18       21             17          15       Information Technology               14                9               8           9              10             8
 Financials                           8          (2)        18       45             17          30       Industrials                          12               11               8           7              10             8
 Industrials                         26         17          15       12             17          19       Consumer Staples                         7             7               9           6                  8          4
 Health Care                          9         13          12       15             12           9       Health Care                              5             5               7           5                  6          3
 Consumer Discretionary              11          4          10          9            9          15       Consumer Discretionary                    4            3               6           7                  5          7
 Consumer Staples                     8          6           9          8            8           9       Telecom Services                         (1)           3               1           3                  1          3
 Telecom Services                     0          (1)         6       18              5          13
 Utilities                          (10)         2           1       16              1           1

 S&P 500 (ex-Energy)                 14          9          13       18             14          16

Source: FactSet and Goldman Sachs Global ECS Research.                                                  Source: FactSet and Goldman Sachs Global ECS Research.
Exhibit 11: TOP-DOWN vs. BOTTOM-UP: Goldman Sachs vs. Consensus                                         Exhibit 12: TOP-DOWN vs. BOTTOM-UP: Sales and Margins
as of June 30, 2011                                                                                     as of June 30, 2011
                                                                                                         10%
                                    Contribution to EPS           Annual earnings growth rates
                                                                                                                                                                            Bottom-up Consensus
                            GS Top-Down EPS          Bottom-up    GS Top-Down            Bottom-Up        9%          S&P 500 Net Profit Margin                                   Forecast
                            2011E     2012E     2011E 2012E       2011E     2012E    2011E      2012E                   (trailing four quarters)                                                         8.7
                                                                                                          8%
   Materials                   $3          $3     $4        $4     24 %      (1)%        37 %    11 %
                                                                                                          7%
   Financials                  16          20     16        21     20        20          17      30
   Information Technology      17          18     18        20     13         5          17      13       6%
                                                                                                                                                                                                   5.9
   Health Care                 12          13     12        13     12         7          12       9                                                                                         Goldman Sachs
                                                                                                          5%
                                                                                                                                                                                                Portfolio
   Industrials                  9          10     10        12     11         9          17      19                                                                                            Strategy
                                                                                                          4%                                                                                   Forecast
                                                                                                                                                                              4.7
   Consumer Staples             9          10          9    10      8         7          8        9
                                                                                                                                            4.1
                                                                                                          3%
   Telecom Services             2           3          2     3      3         9          5       13
                                                                                                               1979




                                                                                                                          1984




                                                                                                                                     1989




                                                                                                                                                        1994




                                                                                                                                                                     1999




                                                                                                                                                                                    2004




                                                                                                                                                                                                  2009




                                                                                                                                                                                                                   2014
   Consumer Discretionary       8           9          9    10      3         2          9       15
   Utilities                    3           3          3     3      0         0          1        1                                            Goldman Sachs                         Consensus
S&P 500 ex-Energy              82          89     84        97     12         8          14      16                                           Portfolio Strategy                      Bottom-Up
   Energy                      14          16     15        16     35        11          41      10                                            2011E     2012E                      2011E 2012E
S&P 500 Operating EPS         $96      $104      $98       $113    15 %       9%         17 %    15 %    Sales Growth                           10.0 %     7.7 %                    12.1 %   5.3 %
                                                                                                         Margin Level                            8.9 %     8.8 %                     9.0 %   9.6 %
                                                                                                          Margin Change (%) Y/Y                     4         (1)                       5       7
                                                                                                          Margin Change (bp) Y/Y                   33        (10)                      46      59

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                                                                                                                                                             4
July 1, 2011                                                                                                                                                                                                                                                                                                                                                                                                                 United States



Revisions
Exhibit 13: EARNINGS and SALES REVISIONS                                                                                                                                                                              Exhibit 14: Stocks with the most POSITIVE and NEGATIVE EPS REVISIONS
Aggregate dollars % change, as of June 30, 2011                                                                                                                                                                       as of June 30, 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
 Materials                                                                0.3 % 0.5 %                 4.4 %             3.8 %           0.1 %          0.3 %              2.9 %         3.1 %
                                                                                                                                                                                                                       DFS                                    27 %                           13 %             30 %                  7%               BAC                        (48)%           (6)%                  (55)%       (19)%
 Industrials                                                              0.3            0.2          2.1               2.4             0.2            0.4                1.9           2.0
                                                                                                                                                                                                                       PHM                                    11                             (7)              49                    3                MU                         (32)           (25)                   (28)        (35)
 Health Care                                                              0.2            0.2          1.7               1.6             0.0           (0.3)               0.4           0.5
                                                                                                                                                                                                                       COG                                         6                         14               57                   24                ALL                        (32)            (2)                   (57)            (4)
 Consumer Staples                                                         0.1            (0.0)        0.4               0.3             0.4            0.4                1.5           1.5
                                                                                                                                                                                                                       AIG                                         5                          2              155                  (19)               CINF                       (31)            (3)                   (60)        (11)
 Information Technology                                                   (0.1)          (0.1)        1.7               1.5             0.1            0.2                0.9           1.5
 Telecommunication Services                                               (0.2)          (0.5)         0.4              0.2            (0.0)          (0.1)               4.2           3.5                            CLF                                         5                          3               12                   (6)               TRV                        (29)            (5)                   (28)            (2)
 Energy                                                                   (0.2)          (0.4)      11.8                7.9            (1.5)          (1.0)               5.3           2.2                            BF.B                                        5                          3                5                   10                HCBK                       (23)           (10)                  (420)        (16)
 Utilities                                                                (0.3)          (0.2)       (0.7)              0.1            NM              NM                 NM            NM                             JOYG                                        5                          7                5                   (0)               XL                         (12)            (5)                   (40)            (7)
 Consumer Discretionary                                                   (0.4)          (0.3)         0.7              0.8            (0.0)           0.1                0.5           0.9                            CF                                          4                         (9)              14                    7                OI                         (11)           (18)                   (13)        (15)
 S&P 500                                                                  (0.8)          (0.2)         1.6              1.8            (0.2)          (0.1)               2.0           1.6                            NVLS                                        4                          1                (7)                 (2)               NBR                         (9)           (11)                   (12)        (18)
 Financials                                                               (4.6)          (0.9)       (5.6)              (1.0)          NM              NM                 NM            NM                             LUV                                         4                         (3)              (13)                (11)               ANR                         (8)           (14)                     (0)       (24)
                                                                                                                                                                                                                       S&P 500                                     (1)%                      (1)%              2%                  (0)%                                          (1)%           (1)%                       2%         (0)%

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 15: S&P 500 1-Month EPS Revision Sentiment vs. 1-Month Return                                                                                                                                                 Exhibit 16: 1-Month Earnings Revision Sentiment by SECTOR
as of June 29, 2011                                                                                                                                                                                                   as of June 29, 2011
                                                                                                                                                                                                                                            15 %
                               60%                                                                                                                                                 30 %

                                               S&P 500                         1-Month FY2 EPS Revision Sentiment (lhs)                                                                                                                     10 %
                               40%                                         [(# pos. revisions - # neg. revisions)/ total revisions]                                                20 %
 1-Month Revision Sentiment




                                                                                                                                                                                                                                                                                                                                   1-Month Earnings Revision Sentiment by Sector
                                                                                                                                                                                           S&P 500 Monthly % Return

                                                                                                                                                                                                                                             5%
                                                                                                                                                                                                                                                                                                                                 [(# pos. revisions - # neg. revisions)/ total revisions]



                                                                                                                                                                                                                       Earnings Sentiment
                               20%                                                                                                                                                 10 %
                                                                                                                                                                                                                                             0%

                              (0)%                                                                                                                                                 0%
                                                                                                                                                                                                                                             (5)%


                              (20)%                                                                                                                                                (10)%                                                    (10)%
                                                                                                                        Price Performance (rhs)
                                                                                                                                                                                                                                            (15)%
                              (40)%                                                                                                                                                (20)%




                                                                                                                                                                                                                                                                                                                                        S&P 500



                                                                                                                                                                                                                                                                                                                                                  Materials




                                                                                                                                                                                                                                                                                                                                                                                   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




                                                                                                                                                                          Dec-11
                                               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                                                                                                                                                                                                                                                                                                                                                                               5
July 1, 2011                                                                                                                                                                                                  United States



Valuation
Exhibit 17: Aggregate valuation metrics for S&P 500 and sectors                                                   Exhibit 18: Standard deviation vs. 10-year history (Z-Score)
bottom-up consensus valuation, as of June 30, 2011                                                                bottom-up consensus, as of June 30, 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    8.0x   2.3x                                    5.7 %  1.1x 12.8x             S&P 500                            (0.8)        (1.2)   (0.9)    (0.6)   (1.3)     (1.1)      (1.0)
 Telecommunication Services   1.9     6.3    2.0                                    9.2     3.3  16.8              Information Technology             (0.5)        (1.4)   0.4      (1.9)   (1.3)     (1.1)      (1.2)
 Consumer Discretionary       1.4     8.2    3.1                                    6.0     1.0  15.3              Health Care                        (1.2)        (1.2)   (0.9)    (1.9)   (0.4)      3.0       (1.1)

 Consumer Staples             1.2     9.5    3.6                                    5.0     1.6  14.7              Financials                         NM           NM      (1.4)     NM     (0.4)     (0.5)      (0.5)

 Industrials                  1.7    10.3    3.0                                     6.0    1.1  14.6              Materials                           1.0         0.1     1.6       0.6     0.0      (0.2)      0.4

 Utilities                   NM       7.4    1.6                                     1.7    4.2  13.4              Utilities                          NM           0.4     0.0      (0.2)    1.1       4.5       0.4

 Materials                    1.5     8.1    3.0                                    5.0     1.2  12.8              Energy                             (0.8)        0.5     0.5       1.2     0.6      (0.2)      0.5

 Information Technology       2.1     8.1    3.6                                    7.4     0.9  12.7              Consumer Discretionary              2.9         0.9     2.5      (0.4)    0.1      (0.8)      0.5

 Health Care                  1.3     7.6    2.7                                     8.2    1.5  12.3              Industrials                         0.3         0.8     2.3       1.1     1.6      (0.5)      0.9

 Financials                  NM       NM     1.1                                    NM      1.1  11.3              Consumer Staples                    1.6         1.2     (0.5)     1.0     1.2       1.3       1.2

 Energy                       1.0     6.2    2.3                                    1.8     1.0  10.9              Telecommunication Services         (0.1)        1.5     1.2      (0.1)    2.8       2.9       1.3


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


Exhibit 19: Historical NTM P/E and LTM P/B values for the S&P 500                                                 Exhibit 20: Top stocks by fastest 2011E earnings growth and lowest NTM P/E
aggregate bottom-up consensus valuation, as of June 30, 2011                                                      by sector, as of June 30, 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                91           33         GCI             6.7           0.5
               10
                                                                                                          12.8     Consumer Staples        WFM                29           15         SVU             7.5           0.6
                5
                                                                      10-yr rolling avg
                0                                                                                                  Energy                  DNR                89           22         VLO             6.4           0.5
                    1/76   1/79   1/82   1/85   1/88   1/91   1/94   1/97    1/00    1/03   1/06   1/09    1/12    Financials              KEY                84             0        HIG             6.9           0.5
               6                                                                                                   Health Care             A                  38           14         MRK             9.2           0.7
               5
                                                P/B                                                                Industrials             CAT                68           31         RTN             9.9           0.8
 LTM P/B (x)




               4
               3                                                                                                   Info Tech               NVDA               67           21         LXK             6.7           0.5
               2
               1                                                     10-yr rolling avg                    2.3      Materials               DOW                51           21         CLF             6.5           0.5
               0                                                                                                   Telecom Services        CTL                55             3        T              12.9           1.0
                   1/76    1/79   1/82   1/85   1/88   1/91   1/94   1/97   1/00     1/03   1/06   1/09    1/12
                                                                                                                   Utilities               FE                 25             1        AES             9.9           0.8


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                                                                                                                                                         6
July 1, 2011                                                                                                                                                                                                  United States



S&P 500 Factor Performance
Exhibit 21: S&P 500 factor return ranking for the week ended June 30, 2011 (a)
                                                    Last Week Spread (%)                                          Performance Spread of Top Quintile Less Bottom Quintile (%)
                                                                                                 Last                                   Last Five Trading Days                                       Last         Last
                         (b)            (2)        (1)         0           1          2
 Growth Metrics                                                                                 Week             24-Jun           27-Jun           28-Jun           29-Jun          30-Jun          Month       Quarter
   Sales Growth                                                                                    1.7               (0.1)             0.4              0.8             0.5              0.0          0.1          (0.1)
   GROWTH                                                                                          1.2               (0.3)             0.5              0.8             0.4             (0.3)        (0.4)         (0.4)
   EBITDA Growth                                                                                   1.0               (0.2)             0.3              1.0             0.1             (0.1)        (0.3)         (0.3)
   EPS Growth                                                                                      0.0               (0.3)             0.4              0.6            (0.0)            (0.6)        (1.0)          0.6

                   (b)
 Value Metrics
   VALUATION                                                                                       1.3                1.1              0.6              0.1            (0.1)            (0.3)         3.0         11.3
   EV/FCF                                                                                          1.3                1.2              0.1              0.1             0.4             (0.5)         1.7           6.0
   EV/EBITDA                                                                                       1.2                1.3              0.6             (0.0)           (0.5)            (0.2)         3.0         11.3
   P/B                                                                                             1.1                1.0              0.3             (0.5)            0.2             (0.1)         2.6           8.2
   P/E                                                                                             0.9                0.6              0.8              0.1            (0.4)            (0.2)         1.6           9.6
   EV/DACF                                                                                         0.6                1.3              0.5             (0.3)           (0.4)            (0.4)         3.1         12.2
   P/Div                                                                                           0.6               (1.2)             0.4              1.0             0.1              0.5         (1.4)         (1.2)

                               (b)
 Profitability Metrics
   CROCI                                                                                           1.2               (0.5)             0.2              0.9             0.1              0.6          2.1           0.0
   PROFITABILITY                                                                                   1.2                0.2              0.1              0.2             0.4              0.3          1.7           2.0
   ROCE                                                                                            0.9               (0.0)             0.0              0.2             0.2              0.4          1.7           3.2
   ROE                                                                                             0.6                0.6             (0.0)            (0.3)            0.1              0.2          2.0           4.4

                   (c)
 Other Metrics
   Short Interest Level                                                                           (1.2)              (0.8)            (0.1)            (0.2)           (0.1)             0.1         (3.7)         (6.1)
   Equity Capitalization                                                                           0.9                0.1              0.1              0.0             0.5              0.2          3.1           4.4


(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                                                                                                                                                           7
July 1, 2011                                                                                                                                                                                                                                                                                                              United States



Style and Size
Exhibit 22: Total return by style and size over time                                                                                                                 Exhibit 23: Total return by SECTOR for S&P 500 vs. Russell 2000
as of June 30, 2011                                                                                                                                                  as of June 30, 2011

                                                                        Total Return Percentage Change (%)                                                                                               Weight (%)                            1-Week (% Return)                                       YTD (% Return)
                                                         1-Week                  1-Month               3-Month                6-Month                  YTD            Sector                            SP500 R2000                          SP500 R2000 ∆ (bps)                                    SP500 R2000 ∆ (bps)
                                                                                                                                                                      Materials                              4                 5                 4                 3                     97              4              5                (186)
 Large Cap vs. Small Cap
                                                                                                                                                                      Financials                            15                21                 3                 3                     78             (3)             1                (376)
  S&P 500                                                         3                     (1)                      (0)                     6                       6
                                                                                                                                                                      Cons Discretionary                    11                13                 3                 3                     46              8              5                327
  Russell 2000                                                    3                     (1)                      (1)                     5                       6    Telecom Services                           3              1                2                 2                     27              7             18          (1,116)
    Large vs. Small (bps)                                      (21)                   27                        115                  62                    (18)       Utilities                                  3              3                2                 2                     (11)            9              9              16
                                                                                                                                                                      Information Tech                      18                 18                3                 3                     (18)            2              8                (581)
 Growth vs. Value                                                                                                                                                     Industrials                           11                 15                3                 4                     (31)            8              3                 461
  Russell 1000 Growth                                             3                     (0)                      1                       7                       7    Consumer Staples                      11                  3                1                 2                (94)                 8             11                (341)
                                                                                                                                                                      Health Care                           12                13                 1                 2               (117)              14               13                 82
  Russell 1000 Value                                              3                     (1)                      (1)                     6                       6
                                                                                                                                                                      Energy                                13                 7                 4                 6               (145)              11               11                 37
    Growth vs. Value (bps)                                     41                     64                        145                  68                         92
                                                                                                                                                                        Index                            100                  100                3                 3                     (21)            6              6                 (18)


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


Exhibit 24: GROWTH vs. VALUE relative performance over time                                                                                                          Exhibit 25: LARGE CAP vs. SMALL CAP relative performance over time
Russell 1000 Growth vs. Value, as of June 30, 2011                                                                                                                   S&P 500 vs. Russell 2000, as of June 30, 2011
                                                                                                                                                                       110
  105                                                                                                                                                                                                                                                                                         S&P 500 outperforming
                                                                                                                          Value outperforming
                                                                                                                                                                       105
  100

                                                                                                                                                                       100
   95

                                                                                                                                                                        95
   90


   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




                                                                                                                                                                                                                                                                                                                                Jul-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




                                                                                                                                                       Jul-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                                                                                                                                                                                                                                                                              8
July 1, 2011                                                                                                                                                                                         United States



Global Equity Market and Mutual Fund Performance
Exhibit 26: GLOBAL EQUITY MARKET performance over the past week                                           Exhibit 27: US EQUITY MUTUAL FUND performance vs. benchmark
as of June 30, 2011                                                                                       as of June 30, 2011

                                                                                                                                                 Avg. Total Return (%)              Stdev          No. of   AUM
       France (CAC 40)                                                                        8            Lipper Indices                           1-week           YTD    1-Week        YTD      Funds    $ bil
        Spain (IBEX 35)                                                                  7                 Large-Cap Core Funds                        2.9           5.3      0.4           2.3      30     526
  Europe (DJ Stoxx 600)                                                        6                            Benchmark: S&P 500                         2.9           6.0
        Germany (Dax)                                                          6                            Out / (Underperformance) (bps)              (2)          (72)
         UK (FTSE 100)                                                     5
                                                                                                           Large-Cap Growth Funds                      3.6           5.0      0.8           3.6      30     275
         Mexico (Bolsa)                                                5
                                                                                                            Benchmark: Russell 1000 Growth             3.1           6.8
     Australia (ASX 200)                                           5
                                                                                                            Out / (Underperformance) (bps)              47          (185)
    China (MSCI China)                                     4
                                                                                                           Large-Cap Value Funds                       2.8           5.4      0.3           1.6      30     194
       Brazil (Bovespa)                                    4
                                                                                                            Benchmark: Russell 1000 Value              2.7           5.9
         Korea (KOSPI)                                 3
                                                                                                            Out / (Underperformance) (bps)               7           (50)
         U.S. (S&P 500)                               3
                                                                                                           Small-Cap Core Funds                        3.1           6.2      0.3           2.2      30     160
          Japan (Nikkei)                       2
                                                                                                            Benchmark: Russell 2000                    3.1           6.2
                            0      1       2        3     4      5    6                 7    8        9     Out / (Underperformance) (bps)              (4)           (5)
                                                   % Weekly price change

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


Exhibit 28: GLOBAL EQUITY MARKET performance over time                                                    Exhibit 29: International and other MUTUAL FUND performance
as of June 30, 2011                                                                                       as of June 30, 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
   Germany (Dax)                       6             5         8                   15             9       International Equity
   Spain (IBEX 35)                     7             3         (1)                 14         (23)
                                                                                                            Global Funds                                      3         5           0.8      3.3     30     194
   France (CAC 40)                     8             2          2                  13         (10)
                                                                                                            International Funds                               4         4           0.6      2.6     30     468
   Korea (KOSPI)                       3              1         4                   9            25
                                                                                                            European Funds                                    5         7           0.8      2.2     10      NA
   Europe (DJ Stoxx 600)               6             (1)        1                  7              2
                                                                                                            Emerging Market Funds                             4         0           0.5      1.8     30     124
   U.S. (S&P 500)                      3             (1)       (1)                 5             13
   UK (FTSE 100)                       5             (2)       (0)                 3              6       Real Estate and Natural Resources
   Australia (ASX 200)                 5             (1)       (1)                 1             11         Real Estate                                       2        10           0.7      2.0     30       52
   China (MSCI China)                  4             (2)       (1)                  1             5         Natural Resource                                  5         7           0.6      3.3     10      NA
   Mexico (Bolsa)                      5             1         (0)                 (0)           27
                                                                                                          Fixed Income
   Japan (Nikkei)                      2             3          4                  (4)           11
                                                                                                            General U.S. Government Funds Index               (1)       2           0.9      1.0     29      NA
   Brazil (Bovespa)                    4             (0)       (4)                 (4)            6
                                                                                                            A Rated Bond Funds Index                          (1)       3           0.5      0.7     29      NA
     Average                           5             1         1                   5              7         BBB Rated Funds Index                             (1)       4           1.0      1.5     30      NA


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                                                                                                                                                   9
July 1, 2011                                                                                                                                                                                        United States



ETF Analysis: Composition, Valuation, Growth and Ownership
Exhibit 30: Selected ETF analysis for the week ended June 30, 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             92,709       499      3      11       19          3        5        13     2.2    2.0      11       6        18      13        2.2        3.4
 S&P 100                       OEX            OEF              2,929       100      5      18       30          3        4        12     2.2    2.2      12       6        17      13        1.6        2.1
 Nasdaq-100                    NDX            QQQ             23,028       100     12      37       52          3        5        14     3.5    0.9      15      10        16      13        1.9        4.0
 Consumer Discretionary        IXY            XLY              2,816        78      7      28       44           3       8        15     2.9    1.5       9       7        16      15        2.6        5.7
  Homebuilders                 SPHOME         XHB                776        35      4      19       38          (0)      4        27     2.0    1.1       2      10       224     110        3.4        5.4
  Retail                       IRH            RTH                169        18     18      58       84           1       2        15     2.8    1.9       6       5        10      13        2.4        3.6
  Retail                       SPSIRETR       XRT                659        95      1       6       12           1       5        18     2.4    0.8       5       5         8      25        3.4        7.4
 Consumer Staples              IXR             XLP             4,074        41     14      44       65          1        6        15     3.4    3.0       7       4         8      10        2.7        2.1
 Energy                        IXE             XLE             8,833        41     17      48       63          4       11        11     2.4    1.6      22       8        39      13        2.0        3.8
  Clean Energy                 ECO             PBW               432        55      2      11       21          3      (13)       26     1.8    0.4      25      15       NM       50        5.6        4.6
  Natural Resources            SPGSSINR        IGE             2,187       156      8      30       42          3        3        13     2.3    1.4      21       8        41      19        2.2        4.1
  Oil & Gas E&P                SPSIOP          XOP               857        74      2       8       15          5       12        16     2.4    0.4      28      14       119      48        2.6        6.1
  Oil Services                 OXH             OIH             2,761        14     19      68       92          5        8        16     2.1    1.2      21      16        12      38        2.0        3.9
 Financials                    IXM             XLF             7,194        82      9      37       51          3       (4)       11     1.0    1.6     NM      NM         23      24        2.1        3.4
   Banks                       BKX             KBE             1,664        24      8      34       58          3       (7)       12     1.0    1.7     NM      NM         56      29        1.3        3.4
   Broker-Dealers              DJSINV          IAI                70        25      9      35       58          2       (8)       13     1.3    1.3     NM      NM         20      27        1.9        3.5
   Insurance                   KIX             KIE               213        24     10      37       59          4       (3)       10     1.0    1.9     NM      NM          0      44        2.5        4.2
   Real Estate                 DJUSRE          IYR             3,677        81      8      25       41          2        8        16     2.4    4.0     NM      NM         10       8        6.0        2.1
   Regional Banks              KRX             KRE               574        50      3      14       26          3       (3)       17     1.2    2.0     NM      NM        134      43       10.2        2.2
   REITs                       RMZ             VNQ             9,409       106      9      28       45          2        8        17     2.5    3.5     NM      NM         13       8        6.5        2.1
 Health Care                   IXV             XLV             4,235        52     13      41       57          1       13        12     2.6    2.1       4       3        6       6         2.6        4.1
  Biotech                      SPSIBI          XBI               643        43      3      16       32          3       16       NM      6.7    0.0       9      17       NM      NM         4.2        9.9
  Pharmaceuticals              IPH             PPH               530        14     24      77       96          1        9        11     2.6    3.3       5      (1)       5       2         2.5        3.5
 Industrials                   IXI             XLI             4,057        60     10      31       49          3        7        15     3.1    2.1       9       8        21      18        2.6        2.3
   Transportation              TRAN            IYT               612        20     11      46       72          2        6        20     2.6    1.6      10       8        17      46        2.7        4.6
 Information Technology        IXT             XLK             7,494        82     12      41       61          3        2        13     3.2    1.6      10       7        14      12        1.7        3.7
   Semiconductors              SOXXIV          SOXX              199        30      9      39       61          2       (0)       12     2.9    1.3      12       6         9       9        2.2        3.1
   Semiconductors              XSH             SMH               524        18     21      66       87          2        5        12     3.3    2.0      10       5         6       8        1.9        3.5
   Software                    SPGSTISO        IGV               611        56      9      36       56          3        9        19     4.2    0.4      10      10        16      14        2.3        3.7
   Telecom Services            DJSTELT         IYZ               821        31     15      45       65          2        6        31     2.4    3.0      11       3        79      55        2.9        6.4
 Materials                     IXB             XLB             2,633        30     11      49       68          4        2        13     3.1    2.0      14       6        41      13        2.0        3.5
  Gold Miners                  GDM             GDX             6,777        30     15      49       72          1      (11)       14     2.4    0.8      29       7        60      13        1.2        3.1
  Metals & Mining              SPSIMM          XME             1,013        41      3      15       28          5        1        13     2.1    0.8      19      10       132      42        2.1        4.6
  Steel                        STEEL           SLX               221        26     12      45       69          5       (6)        9     1.7    1.7      26       8        74      17        2.2        3.1
 Utilities                     IXU             XLU             4,693        33       8     34       55          2        7        13     1.6    4.3     NM      NM         (2)      0        2.9        1.7
(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 1Q 2011 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                                                                                                                                                10
July 1, 2011                                                                                                                                                                                                                                            United States



Fund Flows
Exhibit 31: Domestic equity mutual fund flows, 4-week moving average                                                                                    Exhibit 32: US EQUITY MUTUAL FUND performance vs. benchmark
week ended June 29, 2011                                                                                                                                week ended June 29, 2011; excluding ETFs

                5.0                                                                                                                                                                                    AMG Weekly Mutual Fund Flows, ex-ETFs ($ billions)
                                                                                                                                                                                  Total AMG             Weekly Flows      1-Week Flow    Inflow/(Outflow)
                3.0                                  Domestic Equities, 4-week moving avg                                                                                          Assets           4-Week Avg This week % of Assets     (Cons. Weeks)
                                                                                                                                                         All Equity                   2,138             (1.3)         (0.6)           (0.0)%                  (6)
                1.0                                                                                                                                      U.S. Equity                  1,567             (1.3)         (0.2)           (0.0)                   (6)
                                                                                                                                                                                                                                                              (1)
  $ billions




                                                                                                                                                         Int'l Equity                   468              0.0          (0.3)           (0.1)
               (1.0)
                                                                                                                                                         Global                         103             (0.1)         (0.0)           (0.0)                   (4)
               (3.0)                                                                                                                                     Equity Income                   86              0.3          0.3              0.3                    7
                                                                                                                                                         Gold & Nat Res                  47             (0.1)         (0.0)           (0.0)                   (4)
               (5.0)
                                                                                                                                                         Money Market                 2,448            (10.8)       (20.8)            (0.9)                   (3)
               (7.0)                                                                                                                                     All Taxable Bond             1,230              2.0          1.8              0.1                28
                       Dec-05

                                  Jun-06

                                            Dec-06

                                                       Jun-07

                                                                Dec-07

                                                                            Jun-08

                                                                                       Dec-08

                                                                                                  Jun-09

                                                                                                           Dec-09

                                                                                                                    Jun-10

                                                                                                                             Dec-10

                                                                                                                                      Jun-11

                                                                                                                                               Dec-11
                                                                                                                                                         Govt Treas                      27              0.1          0.1              0.4                12




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


Exhibit 33: Average daily TRADING TURNOVER over the last week                                                                                           Exhibit 34: Top ten S&P 500 STOCKS by daily average trading turnover
by sector, as of June 30, 2011                                                                                                                          as of June 30, 2011

                           Materials                                                                                                                                                                                                    Avg Daily             1-Week
                                                                                                                    1.3
                                                                                                                                                                                                                                         Trading               Total
                           Info Tech                                                                         1.1
                                                                                                                                                         Company                              Ticker Sector                           Turnover (%)       Return (%)
                       Cons Discr                                                                          1.1
                                                                                                                                                         RadioShack Corp.                     RSH      Consumer Discretionary                  8.4                  1
                         Financials                                                             0.9
                                                                                                                                                         AK Steel                             AKS      Materials                               7.0                  9
                            S&P 500                                                             0.8
                                                                                                                                                         United States Steel Corp.            X        Materials                               6.5                  7
                                Energy                                                      0.8
                                                                                                                                                         Netflix Inc.                         NFLX     Consumer Discretionary                  6.0                  3
                         Industrials                                                   0.7
                                                                                                                                                         Micron Technology                    MU       Information Technology                  5.3              (11)
                       Health Care                                                    0.7                                                                                                                                                      5.2
                                                                                                                                                         Alpha Natural Resources Inc.         ANR      Energy                                                       4
                                Utilities                                            0.6                                                                 SanDisk Corp.                        SNDK     Information Technology                  4.2                  (3)
               Telecom Services                                                  0.6                                                                     CF Industries Holdings               CF       Materials                               3.9                  (1)
                   Cons Staples                                              0.5                                                                         First Solar Inc.                     FSLR     Information Technology                  3.4                  8
                                                                                                                                                         NVIDIA Corp.                         NVDA     Information Technology                  3.3                  (2)
                                            0.0                                         1.0                                                      2.0
                                                                         % Daily Avg Trading Turnover                                                      S&P 500 Average                                                                     1.1                  3

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                                                                                                                                                                                                         11
July 1, 2011                                                                                                                                                                                                                                                                                                                                                                                                                                     United States



Correlation and Risk
Exhibit 35: S&P 500 stock and sector average correlation                                                                                                                                                                                                            Exhibit 36: Credit Default Swaps, 5-Year On-the-run Spreads
as of June 30, 2011                                                                                                                                                                                                                                                 as of June 30, 2011
                                                                                                                                                                                                                                                                                                     150                                                                                                                                                  800
                         1.0
                         0.9                                 Average sector correlation




                                                                                                                                                                                                                                                                        Investment Grade CDX (bps)
                                                                                                                                                                                                                                                                                                                                                                                                                                                          700
                         0.8                                                                                                                                                                                                                                                                         125




                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  High Yield CDX (bps)
   Average Correlation




                         0.7                                                                                                                                                                                                                      0.70                                                                                                                                                                                                    600
                         0.6                                                                                                                                                                                                                                                                                                                                                                            CDX (IG) (lhs)
                                                                                                                                                                                                                                                                                                     100
                         0.5
                                                                                                                                                                                                                                                                                                                                                                                                                                                          500
                         0.4
                                                                                                                                                                                                                                                  0.36                                                   75
                         0.3                                                                                                                                                                                                                                                                                                                                                                                                                              400
                                                                                                                                                                                                                                                                                                                                                                                                                  CDX (HY) (rhs)
                         0.2
                         0.1                                                                                                                                                                                                                                                                             50                                                                                                                                               300
                                                                                                                                                                  Average stock correlation
                         0.0




                                                                                                                                                                                                                                                                                                                  Jan-10




                                                                                                                                                                                                                                                                                                                                                        Jul-10


                                                                                                                                                                                                                                                                                                                                                                   Sep-10


                                                                                                                                                                                                                                                                                                                                                                             Nov-10


                                                                                                                                                                                                                                                                                                                                                                                               Jan-11




                                                                                                                                                                                                                                                                                                                                                                                                                                        Jul-11


                                                                                                                                                                                                                                                                                                                                                                                                                                                 Sep-11
                                                                                                                                                                                                                                                                                                                           Mar-10


                                                                                                                                                                                                                                                                                                                                      May-10




                                                                                                                                                                                                                                                                                                                                                                                                         Mar-11


                                                                                                                                                                                                                                                                                                                                                                                                                    May-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 37: S&P 500 Cost of Equity = ERP + 10 Year Treasury Yield                                                                                                                                                                                                   Exhibit 38: Risk Barometer and S&P 500 VIX Volatility Index, as of 30-Jun-11
as of June 30, 2011                                                                                                                                                                                                                                                 Risk Barometer index is number of standard deviations from the average * 100
                                                                                                                                                                                                                                                                                                60                                                                                                                                                        150
  10.0
     9.0
                                                                                                                                                                                                                        8.3 %                                                                   40                  Risk Aversion                                                                                                                         100
     8.0                                                                                                                                                                                                                                                                                                             Increasing                                  S&P 500 VIX (LHS)                                           30-Jun-11
                                                                                                                                                                                                                      Cost of
     7.0                                                                                                                                                                                                              Equity                                                                    20                                                                                                                                     17                 50




                                                                                                                                                                                                                                                                                                                                                                                                                                                                 Risk Barometer
     6.0


                                                                                                                                                                                                                                                                     S&P 500 VIX
                                                                                                                                                                                                                       ERP
     5.0                                                                                                                                                                                                                                                                                             0                                                                                                                                                    0
                                                                                                                                                                                                                       5.1 %
     4.0
     3.0                                                                                                                                                                                                               3.2 %                                                           (20)                                                                                                                                       (34)                    (50)

     2.0                                                                                                                                                                                                      10 Year
                                                                                                                                                                                                            US Treasury                                                                                                                                                                                                      Risk Aversion
     1.0                                                                                                                                                                                                       Yield                                                                   (40)                                                                                                                                   Decreasing                  (100)

     0.0                                                                                                                                                                                                                                                                                                                                  Risk Barometer (RHS)
                         Dec-07




                                                                               Dec-08




                                                                                                                                  Dec-09




                                                                                                                                                                                     Dec-10




                                                                                                                                                                                                                                         Dec-11
                                                    Jun-08




                                                                                                       Jun-09




                                                                                                                                                             Jun-10




                                                                                                                                                                                                              Jun-11




                                                                                                                                                                                                                                                                                       (60)                                                                                                                                                               (150)



                                                                                                                                                                                                                                                                                                                                               Jun-10




                                                                                                                                                                                                                                                                                                                                                                                                                              Jun-11
                                                                                                                                                                                                                                                                                                                             Mar-10




                                                                                                                                                                                                                                                                                                                                                                                                         Mar-11
                                                                                                                                                                                                                                                                                                         Dec-09




                                                                                                                                                                                                                                                                                                                                                                    Sep-10




                                                                                                                                                                                                                                                                                                                                                                                      Dec-10




                                                                                                                                                                                                                                                                                                                                                                                                                                                 Sep-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                                                                                                                                                                                                                                                                                                                                                                                                                                  12
July 1, 2011                                                                                                                                                                                                             United States



Goldman Sachs Recommendations and Forecasts
Exhibit 39: Goldman Sachs Recommended Sector Weightings (a)                                                  Exhibit 40: Goldman Sachs US Economics quarterly GDP forecasts
as of June 30, 2011                                                                                          as of June 30, 2011
                                                                                                                                              5.0 %
                                                          Sector Weightings
                              Total     Goldman Sachs             Current             GS             GS                                       4.5 %    Goldman Sachs




                                                                                                              GDP Growth (qoq annualized %)
                             Return     Recommended               S&P 500         Overweight /      Alpha
                                                                                                                                              4.0 %     Economics
 Sectors                      YTD      Sector Weightings           Weight         Underweight        YTD                                                                                  Consensus
 Energy                        11 %                                 13 %              200 bp         11 bp                                    3.5 %
                                          Overweight
 Consumer Staples               8                                   11                200            (7)
                                                                                                                                              3.0 %
 Financials                    (3)                                  15                   0           (5)
                                                                                                                                              2.5 %
 Information Technology         2                                   18                   0           (6)
 Health Care                   14                                   12                   0          (10)                                      2.0 %
                                             Neutral                                                                                                  3.7
 Industrials                    8                                   11                   0            0                                                                                                                 3.5   3.5
                                                                                                                                              1.5 %                     3.1                   3.3   3.3
                                                                                                                                                                                                          3.0   3.0
 Materials                      4                                    4                   0            0                                                           2.6
 Telecom Services               7                                    3                   0            0                                       1.0 %                           1.9     2.0
                                                                                                                                                            1.7
 Utilities                      9                                    3                (200)          (4)                                      0.5 %
                                          Underweight
 Consumer Discretionary         8                                   11                (200)          (2)
                                                                                                                                              0.0 %
 S&P 500                        6%                                 100 %                 0 bp       (24)bp                                            Q1A Q2A Q3A Q4A Q1A Q2E Q3E Q4E Q1E Q2E Q3E Q4E

(a) Sector weightings last rebalanced on May 26, 2011.
                                                                                                                                                              2010                        2011                        2012
Source: FactSet and Goldman Sachs Global ECS Research.                                                       Source: Bloomberg and Goldman Sachs Global ECS Research.


Exhibit 41: Goldman Sachs 3-, 6-, and 12-month forecasts                                                     Exhibit 42: Goldman Sachs US Economics forecasts
as of June 30, 2011                                                                                          as of June 30, 2011
                                                                         Forecasts                                                                                                          % Annual Change
                            units       Current             3m              6m                12m                                                                               2010A             2011E         2012E
 Equities                                                                                                     Real GDP                                                           2.9%              2.5%          3.1%
   S&P 500                level           1321            1400            1450               1500               Consumer Spending                                                1.7               2.5          2.8
   DJStoxx 600            level            273             280             300                315
                                                                                                                Total Fixed Investment                                           3.9               4.6          7.3
   Asia Pac Ex-Japan      level            481             500             530                575
   TOPIX                  level            849             850             870                970                 Business Fixed Investment                                      5.7               6.3          7.3
 Ten Year Rates                                                                                                   Residential Investment                                        (3.0)             (2.3)         7.3
   US                       %              3.2             3.5              3.8               4.0               Federal Government Spending                                      4.8              (0.0)         0.2
   Euroland                 %              3.0             3.3              3.5               3.5               Exports of Goods and Services                                   11.7               8.5          8.4
   Japan                    %              1.1             1.4              1.6               1.8               Imports of Goods and Services                                   12.6               3.9          6.5
 Currencies                                                                                                   Inflation
   Euro / US Dollar      EUR/$            1.45             1.45            1.50            1.55                 Producer Price Index                                                4.2             6.2          2.1
   Sterling / US Dollar    £/$            1.61             1.61            1.67            1.85
                                                                                                                Headline CPI                                                        1.7             3.2          2.1
   US Dollar / Yen         $/¥            80.8            82.00           82.00           86.00
 Energy                                                                                                         Core CPI                                                            1.0             1.4          1.4
   Brent Crude Oil        $/bbl         112.48           117.00          120.00         130.00                  Core PCE                                                            1.3             1.2          1.4
   NYMEX Nat. Gas       $/mmBtu           4.37             4.00            4.25           4.25                Unemployment Rate                                                     9.6             8.9          8.4
 Metals                                                                                                       Fed Funds Rate                                                        0.2             0.2          0.2
   London Gold          $/troy oz         1503            1480            1565            1690                2-year Treasury Rate                                                  0.6             1.0          2.0
   LME Copper             $/mt            9430            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                                                                                                                                                                   13
July 1, 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 43: Strategy basket performance and average valuation data                           Exhibit 44: Strategy basket total return performance over the last week
as of June 30, 2011                                                                          last week % total return, as of June 30, 2011
                             Bloomberg           Total Return %       P/E   P/B    Div Yld           Low Op Leverage <GSTHOPLO>                                                                   4.0
                             Ticker            1 wk     1 mo   YTD    NTM   LTM      (%)              Revenue Growth <GSTHREVG>                                                                3.8
                                                                                                       Hedge Fund VIP <GSTHHVIP>                                                               3.8
 Macroeconomic Baskets                                                                             Domestic Cyclicals <GSSBDCYC>                                                              3.7
                                                                                                                GARP <GSTHGARP>                                                              3.6
 International Sales         GSTHINTL           3%       (2)%   5%    16x   4.8x    1.4 %        Western Europe Sales <GSTHWEUR>                                                            3.5
 US Sales                    GSTHAINT           2        (1)    8     17    2.9     1.8                     BRIC Sales <GSTHBRIC>                                                           3.5
                                                                                                         ROE Growth <GSTHGROE>                                                              3.5
 Western Europe Sales        GSTHWEUR           4        (1)    12    17    4.6     1.0
                                                                                                      Global Cyclicals <GSSBGCYC>                                                          3.5
 BRICs Sales                 GSTHBRIC           4        (2)    7     15    4.2     1.1                      Dual Beta <GSTHBETA>                                                         3.4
 Dual Beta                   GSTHBETA           3        (4)     3    17    2.9     0.7                       Int'l Sales <GSTHINTL>                                                   3.1
                                                                                                            Strong B/S <GSTHSBAL>                                                     3.0
 Fundamental Baskets                                                                                                         S&P 500                                                 2.9
                                                                                                             Weak B/S <GSTHWBAL>                                                     2.9
 ROE Growth                  GSTHGROE           4%       (1)%    8%   16x   4.3x    1.5 %            High Op Leverage <GSTHOPHI>                                                   2.7
                                                                                                       Dividend Growth <GSTHDIVG>                                                 2.7
 Revenue Growth              GSTHREVG           4        0            24    5.7     1.0                  Low HF Conc <GSTHHFSL>                                                   2.7
 High Op Leverage            GSTHOPHI           3        (2)    9     15    2.9     1.3             High Sharpe Ratio <GSTHSHRP>                                                2.5
 Low Op Leverage             GSTHOPLO           4        (0)     9    16    4.8     1.4             Global Defensives <GSSBGDEF>                                               2.4
                                                                                                              US Sales <GSTHAINT>                                             2.4
 Strong Balance Sheet        GSTHSBAL           3        0      10    19    5.9     0.9           Domestic Defensives <GSSBDDEF>                                        1.7
 Weak Balance Sheet          GSTHWBAL           3        (2)    9     16    2.8     1.9                  High HF Conc <GSTHHFHI>                                 1.2

 Uses of Cash Baskets                                                                                                                        0             1            2          3            4              5

 Dividend Growth             GSTHDIVG           3%       (1)%   9%    13x   3.6x    2.7 %    Source: FactSet and Goldman Sachs Global ECS Research.
 Hedge Fund Baskets
                                                                                             Exhibit 45: US Portfolio Strategy thematic trade recommendations
 High HF Concentration       GSTHHFHI           1%       (2)%   8%    16x   2.4x    0.5 %    as of June 30, 2011
 Low HF Concentration        GSTHHFSL           3        1      7     19    4.1     2.5
                                                                                                                                 Thematic Trade Recommendations
 Hedge Fund VIP              GSTHHVIP           4        (1)    6     17    5.2     1.1
                                                                                                                                                                                   Initiation         Weekly
 Valuation Baskets                                                                                                                                                              Date       Return     Return
                                                                                                BUY High Revenue Growth Basket (GSTHREVG); SELL S&P 500
 GARP                        GSTHGARP           4%       (1)%    7%   14x   3.5x    1.0 %
                                                                                                 See US Equity Views: Profit margins will decline in 2012 (26-May-11)         26-May-11     0.7 %       0.8 %
 High Sharpe Ratio           GSTHSHRP           3        (2)    9     14    2.7     1.2         BUY BRIC Sales Basket (GSTHBRIC); SELL S&P 500
                                                                                                 See Portfolio Passport: US Stocks for a Growth Market World (12-Apr-11)      12-Apr-11    (0.5)%       0.6 %
 Sector Baskets
                                                                                                BUY ROE Growth Basket (GSTHGROE); SELL S&P 500
 Global Cyclicals            GSSBGCYC           3%       (1)%   7%    15x   3.5x    1.3 %        See 2011 Outlook: Easy Money, Hard Market (1-Dec-10)                         1-Dec-10      0.7 %       0.6 %
 Global Defensives           GSSBGDEF           2        (0)    7     17    5.4     1.5         BUY High Sharpe Ratio Basket (GSTHSHRP); SELL S&P 500
 Domestic Cyclicals          GSSBDCYC           4        (1)    2     16    2.2     1.8          See 2010 Outlook: Cyclical start; defensive finish (7-Dec-09)                7-Dec-09     21.4 %       (0.4)%
 Domestic Defensives         GSSBDDEF           2        (0)    9     17    3.5     2.3

 S&P 500                                        3%       (1)%    6%   13x   2.3x    2.0 %
                                                                                             Results presented should not and cannot be viewed as an indicator of future performance. Further details
 S&P 500 Average                                                      16    3.6     1.7
                                                                                             on performance calculations can be provided upon request.
 S&P 500 Median                                                       15    2.6     1.5
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
July 1, 2011                                                                                                                                                                          United States



Constituents of High Revenue Growth Basket <GSTHREVG>
Exhibit 46: High Revenue Growth Basket, as of June 30, 2011
                                            Consensus Sales                                                                                   Consensus Sales
                                             Level                EPS            Margin                                                        Level             EPS         Margin
                                             ($bn)   Growth      Growth       Level  Change      PE                                            ($bn)   Growth   Growth   Level  Change     PE
  Company Name                   Ticker      2012     2012        2012        2012    2012      NTM       Company Name               Ticker    2012      2012    2012    2012     2012    NTM
Information Technology                                                                                  Health Care
  First Solar Inc.               FSLR          $3.0      26 %       16 %       20 %   (169)bp   13.3x     Watson Pharmaceuticals     WPI         $5.2    22 %    27 %    13 %     46 bp    14.7x
  Salesforce.com                 CRM            2.4      24         40          9      102       NM       Edwards Lifesciences       EW           2.0    21      36      16      176       40.5
  Cognizant Tech Solutions       CTSH           7.3      23         19         14      (36)     25.6      Intuitive Surgical         ISRG         1.9    16      17      26       22       32.7
  F5 Networks Inc.               FFIV           1.5      20         19         25      (25)     27.9      Cerner Corp.               CERN         2.0    13      20      15       87       32.5
  Google Inc.                    GOOG          25.7      20         17         39      (79)     14.4      Celgene Corp.              CELG         5.1    13      20      38      232       17.0
  Apple Computer                 AAPL         129.3      19         16         21      (60)     12.8      Mylan Laboratories         MYL          6.8    11      15      15       55       11.9
  Juniper Networks Inc.          JNPR           5.7      18         24         18       85      19.7          Basket Median                      $3.6    15 %    20 %    16 %     71 bp    24.7x
  Akamai Technologies Inc.       AKAM           1.3      15         13         25      (33)     19.5          Sector Median                       7.9     5      11      16       71       13.9
  Red Hat Inc                    RHT            1.2      15         17         18       33      44.6
      Basket Median                            $3.0      20 %       17 %       20 %    (33)bp   19.6x   Consumer Discretionary
      Sector Median                             4.7       8         13         18       54      14.2     Netflix Inc.                NFLX        $3.6    33 %     45 %    8%     61 bp     54.5x
                                                                                                         Amazon.com                  AMZN        47.5    28       63      3      62        71.5
Financials                                                                                               Priceline.com               PCLN         5.2    23       29     25     111        24.6
  T. Rowe Price Group            TROW          $3.3      14 %       15 %      NM       NM       18.5x    D. R. Horton                DHI          4.0    20      NM       5     250        34.9
  Morgan Stanley                 MS            36.5      13         35        NM       NM        9.4     Abercrombie & Fitch         ANF          4.8    18       50      8     180        20.5
  Federated Investors Inc.       FII            1.0      12         21        NM       NM       13.8         Basket Median                       $4.8    23 %     47 %    8%    111 bp     34.9x
  Franklin Resources             BEN            5.4      12         10        NM       NM       14.6         Sector Median                        8.3     6       15      8      66        15.2
  Invesco Ltd.                   IVZ            4.9      11         18        NM       NM       12.6
  Chicago Merc Exch Holdings     CME            3.6      10         16        NM       NM       16.9    Consumer Staples
  BlackRock Inc.                 BLK            5.4      10         15        NM       NM       14.5     Whole Foods Market Inc.     WFM         $9.9    12 %    15 %     3%      8 bp     31.6x
  Northern Trust Corp.           NTRS           4.2       9         25        NM       NM       15.7     Mead Johnson Nutrition      MJN          3.9     9      15      16      79        24.3
      Basket Median                            $4.5      11 %       17 %                        14.6x    Costco Co.                  COST        97.0     7      16       2      13        22.3
      Sector Median                             5.4       5         15                          13.6     Estee Lauder                EL           5.6     7      16       9      78        25.4
                                                                                                         Coca-Cola Co.               KO          49.0     6      11      20      92        17.0
Energy                                                                                                      Basket Median                        $9.9     7%     15 %     9%     78 bp     24.3x
  Cabot Oil & Gas Corp.          COG           $1.3      32 %       87 %       18 %   530 bp    47.0x       Sector Median                        12.9     4       9      10      37        14.8
  Pioneer Natural                PXD            3.3      32         40         18     103       22.0
  Noble Corp.                    NE             3.8      32         95         27     864       13.5    Materials
  Range Resources Corp           RRC            1.4      30         59         18     330       47.6     Titanium Metals             TIE         $0.6    20 %    43 %    13 %   219 bp     25.8x
  Equitable Resources            EQT            1.7      28         34         24     108       24.4     Nucor Corp.                 NUE         21.4     9      39       6     119        13.5
  EOG Resources                  EOG           10.3      25         61         15     340       24.7         Basket Median                      $11.0    15 %    41 %     9%    169 bp     19.6x
     Basket Median                             $2.5      31 %       60 %       18 %   335 bp    24.5x        Sector Median                        7.7     6      15       8      60        13.6
     Sector Median                              9.2      13         27         16     122       15.5
                                                                                                        Utilities
Industrials                                                                                               CenterPoint Energy         CNP         $9.8    9%      11 %    NM      NM        17.3x
  PACCAR Inc.                    PCAR         $17.3      24 %       43 %        8%    106 bp    17.1x     Oneok Inc                  OKE         16.6    6       11      NM      NM        22.5
  Cummins Inc.                   CMI           19.8      15         18          9      24       12.3           Basket Median                    $13.2    8%      11 %                      19.9x
  Fastnal Co.                    FAST           3.1      15         18         13      33       29.3           Sector Median                     11.0    3        5                        13.7
  Fluor Corp.                    FLR           26.9      15         19          3       9       18.7
  Robert Half International      RHI            4.2      14         54          5     133       24.6    Telecommunication Services
  Precision Castparts            PCP            7.8      13         18         18      66       19.6      MetroPCS Communications    PCS         $4.1    12 %    36 %     9%     158 bp    15.8x
     Basket Median                            $12.6      15 %       18 %        9%     49 bp    19.1x        Sector Median                       11.2     1      10       9       80       16.0
     Sector Median                             11.8       7         16          9      66       15.2
                                                                                                          Basket Median                        $4.8     15 %    19 %     15 %   82 bp     19.7x
                                                                                                          S&P 500 Median                        7.9      6      13       11     64        14.7
Source: I/B/E/S, FirstCall, FactSet, and Goldman Sachs Global ECS Research.



Goldman Sachs Global Economics, Commodities and Strategy Research                                                                                                                                  15
July 1, 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 47: Recent research from US Portfolio Strategy

 Latest Market Research                                                                                                                   Publication Date
 US Thematic Views: GARP Update                                                                                                           July 1, 2011
 US Thematic Views: Semi-annual rebalancing of our High Sharpe Ratio basket                                                               June 1, 2011
 US Equity Views: Profit margins will decline in 2012; trimming EPS and price targets                                                     May 26, 2011
 US Sector Views: Still tight to benchmark: shifts weights on higher oil & lower growth                                                   May 26, 2011
 US Equity Views: Managing the US business cycle transition and global rotation                                                           May 4, 2011
 US Sector Views: Shift sector weights closer to benchmark on balanced risk-reward                                                        April 14, 2011

 Recent US Weekly Kickstart: "Conversations we are having with clients"                                                                   Publication Date
 Investors of all styles are lagging their benchmarks; Coke fits our criteria of stocks to buy                                            June 24, 2011
 S&P 500 1Q ROE forensics and what’s worked during the market pullback                                                                    June 17, 2011
 Asymmetric return potential: 12% upside to our year-end target and 6% downside scenario                                                  June 10, 2011
 Own high "Sharpe Ratio" stocks to manage through the weak macro environment                                                              June 3, 2011
 Changes to our S&P 500 forecasts and recommended sector weights                                                                          May 27, 2011
 10 conclusions from our latest Hedge Fund Trend Monitor                                                                                  May 20, 2011
 Our 1Q 2011 S&P 500 Beige Book highlights the continuing margin growth debate                                                            May 13, 2011

 Franchise Research                                                                                                                       Publication Date
 Global Dividend Swap Monitor: How much in dividends can be expected from European financials?                                            June 21, 2011
 Portfolio Passport: US stocks for a growth market world                                                                                  April 12, 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   May 19, 2011
 S&P 500 Beige Book                                Qualitative assessment of S&P 500 quarterly earnings reports               Quarterly   May 12, 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     June 2, 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     June 8, 2011

Source: Goldman Sachs Global ECS Research.



Goldman Sachs Global Economics, Commodities and Strategy Research                                                                                                             16
July 1, 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.




Goldman Sachs Global Economics, Commodities and Strategy Research                                                                                                      17
July 1, 2011                                                                                                                                                                                   United States



Reg AC
We, David J. Kostin, Stuart Kaiser, CFA, Amanda Sneider, CFA, Ben Snider 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 in this report.




Disclosure Appendix

Distribution of ratings/investment banking relationships
Goldman Sachs Investment Research global coverage universe
                           Rating Distribution                          Investment Banking Relationships
                   Buy             Hold             Sell                 Buy            Hold             Sell
   Global            32%            53%            15%               49%             41%              40%
As of April 1, 2011, Goldman Sachs Global Investment Research had investment ratings on 3,191 equity securities. Goldman Sachs assigns stocks as Buys and Sells on various regional Investment
Lists; stocks not so assigned are deemed Neutral. Such assignments equate to Buy, Hold and Sell for the purposes of the above disclosure required by NASD/NYSE rules. See 'Ratings, Coverage
groups and views and related definitions' below.

Disclosures required by United States laws and regulations
See company-specific regulatory disclosures above for any of the following disclosures required as to companies referred to in this report: manager or co-manager in a pending transaction; 1% or
other ownership; compensation for certain services; types of client relationships; managed/co-managed public offerings in prior periods; directorships; for equity securities, market making and/or
specialist role. Goldman Sachs usually makes a market in fixed income securities of issuers discussed in this report and usually deals as a principal in these securities.
The following are additional required disclosures: Ownership and material conflicts of interest: Goldman Sachs policy prohibits its analysts, professionals reporting to analysts and members of their
households from owning securities of any company in the analyst's area of coverage. Analyst compensation: Analysts are paid in part based on the profitability of Goldman Sachs, which includes
investment banking revenues. Analyst as officer or director: Goldman Sachs policy prohibits its analysts, persons reporting to analysts or members of their households from serving as an officer,
director, advisory board member or employee of any company in the analyst's area of coverage. Non-U.S. Analysts: Non-U.S. analysts may not be associated persons of Goldman Sachs & Co. and
therefore may not be subject to NASD Rule 2711/NYSE Rules 472 restrictions on communications with subject company, public appearances and trading securities held by the analysts.

Additional disclosures required under the laws and regulations of jurisdictions other than the United States
The following disclosures are those required by the jurisdiction indicated, except to the extent already made above pursuant to United States laws and regulations. Australia: This research, and any
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Goldman Sachs (Asia) L.L.C. India: Further information on the subject company or companies referred to in this research may be obtained from Goldman Sachs (India) Securities Private Limited;
Japan: See below. Korea: Further information on the subject company or companies referred to in this research may be obtained from Goldman Sachs (Asia) L.L.C., Seoul Branch. Russia: Research
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Goldman Sachs (Singapore) Pte. (Company Number: 198602165W). Taiwan: This material is for reference only and must not be reprinted without permission. Investors should carefully consider their
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Japan: Goldman Sachs Japan Co., Ltd. is a Financial Instrument Dealer under the Financial Instrument and Exchange Law, registered with the Kanto Financial Bureau (Registration No. 69), and is a
member of Japan Securities Dealers Association (JSDA) and Financial Futures Association of Japan (FFAJ). Sales and purchase of equities are subject to commission pre-determined with clients plus
consumption tax. See company-specific disclosures as to any applicable disclosures required by Japanese stock exchanges, the Japanese Securities Dealers Association or the Japanese Securities
Finance Company.

Ratings, coverage groups and views and related definitions
Buy (B), Neutral (N), Sell (S) -Analysts recommend stocks as Buys or Sells for inclusion on various regional Investment Lists. Being assigned a Buy or Sell on an Investment List is determined by a
stock's return potential relative to its coverage group as described below. Any stock not assigned as a Buy or a Sell on an Investment List is deemed Neutral. Each regional Investment Review
Committee manages various regional Investment Lists to a global guideline of 25%-35% of stocks as Buy and 10%-15% of stocks as Sell; however, the distribution of Buys and Sells in any particular
coverage group may vary as determined by the regional Investment Review Committee. Regional Conviction Buy and Sell lists represent investment recommendations focused on either the size of the
potential return or the likelihood of the realization of the return.
Return potential represents the price differential between the current share price and the price target expected during the time horizon associated with the price target. Price targets are required for
all covered stocks. The return potential, price target and associated time horizon are stated in each report adding or reiterating an Investment List membership.
Coverage groups and views: A list of all stocks in each coverage group is available by primary analyst, stock and coverage group at http://www.gs.com/research/hedge.html. The analyst assigns one
of the following coverage views which represents the analyst's investment outlook on the coverage group relative to the group's historical fundamentals and/or valuation. Attractive (A). The
investment outlook over the following 12 months is favorable relative to the coverage group's historical fundamentals and/or valuation. Neutral (N). The investment outlook over the following 12
months is neutral relative to the coverage group's historical fundamentals and/or valuation. Cautious (C). The investment outlook over the following 12 months is unfavorable relative to the coverage
group's historical fundamentals and/or valuation.
Not Rated (NR). The investment rating and target price have been removed pursuant to Goldman Sachs policy when Goldman Sachs is acting in an advisory capacity in a merger or strategic
transaction involving this company and in certain other circumstances. Rating Suspended (RS). Goldman Sachs Research has suspended the investment rating and price target for this stock, because
there is not a sufficient fundamental basis for determining, or there are legal, regulatory or policy constraints around publishing, an investment rating or target. The previous investment rating and
price target, if any, are no longer in effect for this stock and should not be relied upon. Coverage Suspended (CS). Goldman Sachs has suspended coverage of this company. Not Covered (NC).
Goldman Sachs does not cover this company. Not Available or Not Applicable (NA). The information is not available for display or is not applicable. Not Meaningful (NM). The information is not
meaningful and is therefore excluded.

Global product; distributing entities
The Global Investment Research Division of Goldman Sachs produces and distributes research products for clients of Goldman Sachs, and pursuant to certain contractual arrangements, on a global
basis. Analysts based in Goldman Sachs offices around the world produce equity research on industries and companies, and research on macroeconomics, currencies, commodities and portfolio
strategy. This research is disseminated in Australia by Goldman Sachs & Partners Australia Pty Ltd (ABN 21 006 797 897) on behalf of Goldman Sachs; in Brazil by Goldman Sachs do Brasil Banco
Múltiplo S.A.; in Canada by Goldman Sachs & Co. regarding Canadian equities and by Goldman Sachs & Co. (all other research); in Hong Kong by Goldman Sachs (Asia) L.L.C.; in India by Goldman
Sachs (India) Securities Private Ltd.; in Japan by Goldman Sachs Japan Co., Ltd.; in the Republic of Korea by Goldman Sachs (Asia) L.L.C., Seoul Branch; in New Zealand by Goldman Sachs & Partners
New Zealand Limited on behalf of Goldman Sachs; in Russia by OOO Goldman Sachs; in Singapore by Goldman Sachs (Singapore) Pte. (Company Number: 198602165W); and in the United States of
America by Goldman Sachs & Co. Goldman Sachs International has approved this research in connection with its distribution in the United Kingdom and European Union.
European Union: Goldman Sachs International, authorized and regulated by the Financial Services Authority, has approved this research in connection with its distribution in the European Union and
United Kingdom; Goldman Sachs & Co. oHG, regulated by the Bundesanstalt für Finanzdienstleistungsaufsicht, may also distribute research in Germany.

General disclosures
This research is for our clients only. Other than disclosures relating to Goldman Sachs, this research is based on current public information that we consider reliable, but we do not represent it is
accurate or complete, and it should not be relied on as such. We seek to update our research as appropriate, but various regulations may prevent us from doing so. Other than certain industry reports
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Our salespeople, traders, and other professionals may provide oral or written market commentary or trading strategies to our clients and our proprietary trading desks that reflect opinions that are
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recommendations or views expressed in this research.
We and our affiliates, officers, directors, and employees, excluding equity and credit analysts, will from time to time have long or short positions in, act as principal in, and buy or sell, the securities or
derivatives, if any, referred to in this research.
This research is not an offer to sell or the solicitation of an offer to buy any security in any jurisdiction where such an offer or solicitation would be illegal. It does not constitute a personal
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adverse effects on the value or price of, or income derived from, certain investments.



Goldman Sachs Global Economics, Commodities and Strategy Research                                                                                                                                              19
July 1, 2011                                                                                                                                                                                     United States

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Copyright 2011 Goldman Sachs.
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Goldman Sachs Global Economics, Commodities and Strategy Research                                                                                                                                           20

				
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