New York (HedgeCo.net) – Investment strategists at Goldman Sachs that advise the bank’s wealthiest individual clients issued outlooks for stocks, hedge funds and high-yield debt in their 2016 outlook report and their expectations might surprise you.
Bloomberg recently published an article with the outlooks. First, they are “cautiously optimistic” toward stocks, stating that, “We expect modest single-digit returns for a moderate-risk, well-diversified portfolio given current equity valuations and the level of interest rates.”
With regard to hedge funds, the strategists see the average hedge fund returning between four and five percent during 2016 and that has been the outlook for each of the three previous years.
Perhaps the most interesting outlook was their forecast for high-yield debt where they are recommending clients have an allocation. “We think high-yield fixed income offers a very attractive risk/reward profile, both in the short term and over a longer horizon,” the report said.