The Federal Reserve: Don’t Let It Be Misunderstood

Goldman Sachs prepared its latest recommendations for their clients. June 26, 2013

Key Takeaways:

• 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 following areas 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

but the final decision in which it will invest your money depends only on you :)

good luck in the coming week,

oscarjp