GS says to favour US equites this year despite historically high valuations and Fed tightening ahead. 'Base case' is for a 6.3% total return in 2022.
- “Using valuation as a signal to get out of equities is actually not effective,”
Goldman’s investment strategy group said they expect at least three interest rate hikes by the Fed in 2022, with more potentially coming, if merited, due to higher inflation or faster growth. But “in the event of a global disruption, including a resurgent pandemic, rates could be raised at a slower pace or not at all.”
Wow. Bullish despite these two factors. Makes ya think.
Link here for more, an interesting read nonetheless.
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Do be careful, don't get a nosebleed ....