No surprise, Goldman’s 2010 outlook is for sluggish growth in the developed world and rapid growth in the emerging world. That argues for a continuation of the reflation trade, the carry, trade, the risk trde, whatever you want to call it. They see the Fed staying on hold for the next two years while the world economy posts GDP of 4%. The risk to the scenario is an unlikely Fed tightening in reaction to global growth as opposed to US prospects.
Goldilocks lives! (Pun intended.)
