Goldman Sachs Asset Management (GSAM) executives expect the United States economic system to show slower growth rates in the second half of the current year.
The mentioned forecast provides that the US economy will rise by about 2% during the specified period. Last Tuesday, July 9, GSAM executives announced that stock indexes would remain virtually unchanged. According to them, the realism of this forecast is due to a decrease in earnings growth and political anxieties.
GSAM executives also note that the investment landscape in the United States is becoming more complex, but at the same time, opportunities are opening up, including a broader list of stocks in the artificial intelligence industry.
Lindsay Rosner, head of multi-sector investing at the asset management unit of Goldman Sachs, says that the soft landing scenario is gradually becoming a reality for the US system. The expert says that there is a lifelike possibility that investors will see interest rates cut in the United States in the second half of the current year. Lindsay Rosner does not expect the US central bank to start lowering the cost of borrowing until September. At the same time, the expert noted that the cutting of interest rates could continue at a pace of 25 basis points per quarter.
Lindsay Rosner expects the fixed-income securities market to benefit from lowering the cost of borrowing. The expert sees particularly interesting opportunities in the market of high-yield bonds and structured lending.
Alexis Deladerriere, global equity portfolio manager and head of developed markets at GSAM, says that the biggest tendency in the United States stock market in the current year was the dominance of a small group of companies involved in the artificial intelligence industry, including Nvidia. According to the expert, it is necessary to move away from the first achievements in the area of machine intelligence and diversify exposure to the specified tendency.
Alexis Deladerriere also said that earnings growth is slowing overall. In this context, the expert noted that political concerns are currently increasing both in the United States and at the global level. Alexis Deladerriere stated the uncertainty is just kind of the status quo right now.
As we have reported earlier, Jerome Powell Says About Threat of Long Period of High Interest Rates for Economic Growth.
