Goldman: "Cash will be more attractive than shares in 2019!"

20.11.2018 / 10:48

Rating:

Investors in stocks have been very successful in recent years, but cash seems to be a competitive asset class over the coming months, given the high returns they provide despite high inflation.

Goldman's opinion reflects Fed's interest rate rises, which managed to send more than 2% money-generating returns, exceeding the rate of inflation.

With the Fed's expectation to raise the benchmark interest rate by a further quarter of a percentage point next month, the cache may turn out to be even more attractive.

As far as shares are concerned, Goldman's strategists are of the opinion that it is appropriate to turn to the defense sector, including the utilities sector. They predict that the SP500 will generate a "modest one-digit return" next year, as the "steady" profit and economic growth seen in 2018 is slowing.

Source: Bloomberg Finance L.P.

Charts: Used with permission of Bloomberg Finance L.P.

Trader Petar Milanov

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Goldman: "Cash will be more attractive than shares in 2019!"

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