This is Exchanges of Goldman Sachs, where we discuss developments currently shaping markets, industries, and the global economy.

I'm Jake Seward, global head of corporate communications here at the firm.

Today we'll be talking with David Kostin about what's ahead for U.S. equities in 2020,

but before that we're going to get a quick markets update from Tony Pasquarello of the Goldman Sachs Security's division.

Tony is watching five key numbers in markets right now.

Over to you, Tony.

Hey Jake, thank you.

Glad to be with you today.

My name is Tony Pasquarello.

I'm the global head of Hedge Fund coverage

for the Securities Division of Goldman Sachs.

And the big number I'm looking at right now is 31%.

That was the total return of the S&P 500 in 2019,

which was the best year since 2013

and a 93rd percentile outcome on a longer-term historical basis.

Now against the expectations of most people coming out of a very rocky end to 2018,

last year wound up being a truly superb year for the stock market as well as most

every other major asset class. Witness very strong returns in emerging markets,

the credit markets as well as select commodities like oil and gold.

So in the end 2019 played out as one of the highest quality years in the history of financial

markets and US equities are once again one of the very best horses in the race.

By the way, in the last eight years where S&P was up 20% or more, the market was higher in the subsequent

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