Investors will likely need to look beyond the concentrated group of stocks that drove the market higher in recent years as benchmark returns become more modest and stock-picking opportunities emerge across a more diverse set of regions, sectors, and styles, according to Peter Oppenheimer, chief global equity strategist in Goldman Sachs Research. Equity markets face headwinds that weren’t present during past structural bull markets. These include elevated valuations, higher interest rates and inflation, slower expansion of world trade, sluggish economic growth, and rising demands on government spending. Taken together, these factors mean that absolute returns are likely to be lower than during other sustained market rallies. But Oppenheimer says there could be opportunities for investors to outperform the broader stock market:
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