The robust rally in stocks this year is likely to lose momentum as a rise in bond yields coincides with higher valuations, a Goldman Sachs strategist told Bloomberg TV.
Goldman’s expert, who has previously noted that equity markets outside the US are more attractive, pointed out that the correlation between stocks and Treasuries is expected to increase, as yields have reached a level that “is likely going to weigh on all asset classes.”rises amid sluggish bond auctions and uncertainty surrounding the timing of interest-rate cuts by the Federal Reserve.
The strategist reaffirmed his views that investors should diversify their geographical and sectoral exposure. He believes investors should opt for a barbell approach that includes quality defensive growth stocks such as Big Tech and “deep value” stocks.Scan QR code to install app