A bit of strategic opining from Goldman Here on the recent market moves. In short, they think the markets overreacted to the recent Fed talk and that it’s created a buying opportunity in stocks (via Zero Hedge):
- Clients should use the recent downdraft to build toward their strategic allocation to equities.
- While we think that interest rates will gradually rise over the next several years and lead to low investment Grade Fixed Income returns, a repeat of 1994 is highly unlikely.
- We recommend tactically underweighting Investment Grade Fixed Income in favor of the followingareas where the risk-return opportunities are much more attractive:– High Yield Bonds– US Bank loans– Emerging Market Local Debt– Euro Stoxx 50 (currency hedged)– US Bank Equities