According to statements made on Tuesday by executives at Goldman Sachs Asset Management, the U.S. economy will expand at a slower rate of about 2% in the second half of 2024. Equity indexes will remain largely unchanged as a result of lower earnings growth and political tensions.
Lindsay Rosner, head of multi-sector investing at Goldman Sachs’ (GS.N) asset management division, stated, “It’s absolutely a soft landing,” opens new tab “That’s what we’re seeing as the data comes through.” On Tuesday morning, Rosner and other GSAM executives held an online media gathering to discuss their outlook.
“There is a genuine likelihood” that financial backers will see loan fee cuts in the US in the last part of 2024, Rosner added. She said that although the Federal Reserve may not begin cutting rates until September, they could do so at a rate of 25 basis points per quarter.
Rosner stated that she anticipated the fixed income market to benefit from interest rate reductions. She said she saw especially fascinating open doors with regards to the high return security market and in organized credit. According to Alexis Deladerriere, global equity portfolio manager and head of developed markets at GSAM, the most significant characteristic of the U.S. market for equity investors is that only five stocks and a single trend—AI—have generated half of all stock market returns.
He advised diversifying one’s exposure to this trend and “moving away from the early winners” in AI.
Deladerriere stated that he anticipates that U.S. stocks will remain largely flat in the second half of the year but that a broader range of companies will outperform, including small caps, as overall earnings growth slows and political anxieties increase domestically and globally.
Deladerriere went on to say that GSAM thinks Indian and Japanese stocks are especially attractive right now because they play on trends like AI and addressing climate change.
