INSUBCONTINENT EXCLUSIVE:
Authors: JordanBy Joanna OssingerInvestors should just relax, according to Goldman Sachs Group Inc.
Appetite for riskier assets such as
stocks and high-yield bonds has been suppressed by a number of factors that have come up around the same time, but the headwinds may be
transitory, according to the New York-based investment bank
James Weldon wrote in a note Thursday
Second, concerns over monetary tightening are likely overdone
quarter, but the economists said the United States should soon start to show strength from the fiscal stimulus enacted in December, and
China, Brazil and India continue to look strong
And while markets have had to absorb a big change in Treasury yields, the bulk of the move is probably mostly done, they said.
Goldman also
pointed to some technical factors producing headwinds that are normalizing, including pressure on short-term funding markets due to
repatriation of cash parked in short-term credit, and reduced appetite for selling equity volatility
Also, they said nervousness about earnings should moderate now that reporting season is well underway and most companies have beaten
expectations with increased cash available for share buybacks as well.
The economists did offer some caveats to their view, adding that
