December 11, 2017//-Goldman Sachs Asset Management (GSAM) expects the global economic expansion to continue into 2018, carrying equities to new highs, according to its newly released Investment Outlook.
The report answers six key questions for the year, including: “Are equities overvalued?” and “What gets disrupted next?”
In terms of market views, the GSAM team prefers equities over corporate credit, and corporate credit over interest rates; it also looks to emerging markets outside of China as a bright spot, particularly relative to developed markets. In addition, the team believes central bank tightening will be a catalyst for volatility in 2018 with market expectations for Federal Reserve interest rates hikes unrealistically low.
“The bottom line for us [in 2018] is we expect increased volatility throughout the year, but we think it’s too early to begin positioning for underweighting risk assets broadly,” Kane Brenan, global head and co-CIO of GSAM’s Global Portfolio Solutions Group, said.
gsam.com