Goldman Sees Baby Bond Bear Market, Cyclicals Rally in 2020
- Strategists see upside for risky assets on stabilizing growth
- Top trade ideas include EM stocks, U.S. breakevens, BTPs
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The global economy and earnings will stabilize in 2020, allowing riskier assets to flourish even with central banks keeping policy little changed, according to Goldman Sachs Group Inc.
The investment bank’s top market themes for next year include growth stabilization, upside for cyclical stocks and a “baby bear market” in bonds, said strategists including Lotfi Karoui, Zach Pandl, Kamakshya Trivedi and Jeffrey Currie in a note Thursday.