Goldman Says Low-Rate World Favors Quality Growth Stocks
- Speed, composition of rate changes will be key for equities
- EBay, Cigna, Kraft Heinz should outperform if rates rise
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The backdrop of interest rates remaining low to aid slowing economic growth supports maintaining longer-term positions in high quality, secular growth stocks, according to Goldman Sachs Group Inc.
“The persistently low overall level of interest rates that our economists expect, and their forecast for real GDP growth that should decelerate to a below-trend pace of 1.5% by the end of next year, should continue to support profitable long duration stocks with high quality attributes,” Goldman strategists led by David Kostin, wrote in a note Friday.