Sharmin Mossavar-Rahmani, CIO of Wealth Management at Goldman Sachs offers three pieces of advice to investors..
Sharmin Mossavar-Rahmani, CIO of Wealth Management at Goldman Sachs offers three pieces of advice to investors... 1) Stay fully invested in equities. Whilst we're in sight of the summit, we're not quite there yet. Although we're not sure how long this bull market will run our base case is we expect it to continue further. 2. There's not a bubble. We think there's not excessive credit growth yet. In fact credit growth YOY is about 4% relative to a post WW2 average of about 7%. No excesses there. When we look at equity flows into Mutual funds and ETF's, we have actually seen the first year of positive flows in 2013. That follows 5 years of negative flows. 3) Avoid high quality fixed income and stay overweight high yield. Mossavar's overall message is to keep your money invested, your expectations in check and expect mid single digit returns. (VIEW LINK)