Investors Brace for Fed Tapering Decision

REPLAY VIDEO
Your next video will start in
Pause

Recommended Videos

  • Info

  • Comments

  • VIDEO TEXT

Sept. 18 (Bloomberg) -- Head of Goldman Sachs Asset Management's Global Portfolio Solutions Business Internationally Katie Koch previews the statement to be released by the Federal Reserve and discusses her subsequent investing strategy. She speaks on Bloomberg Television's “The Pulse.” (Source: Bloomberg)

We are going to get an announcement of about 10 million mostly through treasuries.

When you think about it, we have the tapering, the debt ceiling issues, the fed chair.

There is no shortage of sensational headlines september and october.

What really matters for investors is the fact that we are in a rising rate environment.

My team which is the most i -- multi-asset class team has been working very hard to position our portfolios.

We think we are going to weather this storm and perform very well.

What exactly are your favorite text?

What are your favorite tactical ideas?

I would say big picture, when you look at portfolios, we like risk rather than duration.

From an asset class perspective, we have been working with our clients to move to a more unconstrained approach to fixed income.

We like credit exposure.

Within the equity part of the four folio -- or folio, we like equities right now.

Rates are rising because growth looks ok.

On equities, do you prefer european equities?

I would say in the equity exposure, we want global exposure.

That includes emerging markets as well.

Right now we are more tactically over europe and japan.

Is there anything that clients are underestimating?

Absolutely.

The most important thing for success for investors is to have broadly diversified portfolios.

We look at a lot of clients right now.

Take a traditional 6040 split in a portfolio.

They are underestimating how much risk they have in that or folio.

We are working hard to make sure they have exposure to equities that the diversified across a lot of factors.

How much cash should i have in my portfolio?

That say i am a medium risk investor with medium risk appetite.

Do i still keep cash or do i need more?

It is always a good idea to have some cash on the side.

Actually, we see a lot of great valuation there across a number of asset classes.

Most of our portfolios are fully invested.

Like you so much.

-- thank you so much.

For the moment, over to you.

As we head into break, it is time for the pulse number.

9375 pounds is how much a metal sign from the london headquarters of lehman brothers has just sold for at auction.

That is a quarter of its price three years ago.

?

This text has been automatically generated. It may not be 100% accurate.

Advertisement

BTV Channel Finder

Channel_finder_loader

ZIP is required for U.S. locations

Bloomberg Television in   change