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8 Sep 2014
Recommended asset allocation - Goldman Sachs
FXStreet (Łódź) - The Goldman Sachs Global Investment Research team present their updated asset allocation recommendations.
Key quotes
"Equities: We are overweight over both 3 and 12 months. We expectearnings growth, dividends, and high risk premia to support returns."
"Commodities: We are neutral over both 3 and 12 months but expect significant dispersion below the index level. We like nickel, palladium, zinc and aluminium, but see downside for copper and gold. Roll carry is likely to contribute significantly to returns, especially for oil, copper and aluminium."
"Corporate credit: We remain underweight over both 3 and 12 months. We expect spreads to narrow, but given already tight levels, rising government bond yields are likely to dominate the returns, especially for US IG credit. The exception is US HY, and within credit we would recommend an overweight in HY relative to IG."
"Government bonds: We remain underweight. We expect yields to rise due to sustained high US growth and accelerating inflation, a decline in deflation concerns in Europe, and support to inflation expectations from ECB policy action. Expected returns and recommended."
Key quotes
"Equities: We are overweight over both 3 and 12 months. We expectearnings growth, dividends, and high risk premia to support returns."
"Commodities: We are neutral over both 3 and 12 months but expect significant dispersion below the index level. We like nickel, palladium, zinc and aluminium, but see downside for copper and gold. Roll carry is likely to contribute significantly to returns, especially for oil, copper and aluminium."
"Corporate credit: We remain underweight over both 3 and 12 months. We expect spreads to narrow, but given already tight levels, rising government bond yields are likely to dominate the returns, especially for US IG credit. The exception is US HY, and within credit we would recommend an overweight in HY relative to IG."
"Government bonds: We remain underweight. We expect yields to rise due to sustained high US growth and accelerating inflation, a decline in deflation concerns in Europe, and support to inflation expectations from ECB policy action. Expected returns and recommended."