25 Jul 2013
Flash: Overweight outlook for equities 3 and 12 months out – Goldman Sachs
FXstreet.com (New York) - The Economics Research Team at Goldman Sachs analyses the outlook for equities, commodities and fixed interest assets.
Key quotes
“We remain overweight over both 3 and 12 months. Returns should be supported by a rebound in global growth, accelerating earnings growth, still high-risk premia and very easy financial conditions.”
“Within equities we now recommend an overweight in Europe and Japan and an underweight in the US and Asia ex-Japan over 12 months.”
In terms of commodities, “We remain neutral over 3 and 12 months. That said, the strategic case for holding commodities is improving with rising geopolitical risks, a rise in backwardation in energy markets and lower correlations.”
“As for government bonds, bond yields are close to our estimates of current fair value and we see the near-term risk-reward as balanced. Longer term we continue to expect yields to rise as growth improves. We remain neutral over 3 months and underweight over 12 months.”
Key quotes
“We remain overweight over both 3 and 12 months. Returns should be supported by a rebound in global growth, accelerating earnings growth, still high-risk premia and very easy financial conditions.”
“Within equities we now recommend an overweight in Europe and Japan and an underweight in the US and Asia ex-Japan over 12 months.”
In terms of commodities, “We remain neutral over 3 and 12 months. That said, the strategic case for holding commodities is improving with rising geopolitical risks, a rise in backwardation in energy markets and lower correlations.”
“As for government bonds, bond yields are close to our estimates of current fair value and we see the near-term risk-reward as balanced. Longer term we continue to expect yields to rise as growth improves. We remain neutral over 3 months and underweight over 12 months.”