Here's The Advice Goldman Sachs Is Giving Its Millionaire Clients
After witnessing the S&P 500 surge 30% in 2013, and return 200% since the market trough in March 2009, investors are wondering what they should do next.
- Underweight investment grade bonds, including intermediate municipal bonds and 10-year Treasuries, because they are expected to have slightly negative total returns for 2014 and modest positive returns over the next five years.
- Overweight high-yield bonds and bank loans as they are expected to outpeform investment grade bonds and cash in the near term and over next five years.
- Maintain exposure to hedge funds as they should have mid-single-digit returns and should outperform bonds.
- Stay fully invested in U.S. equities will have modest single-digit returns of about 3% in 2014 and slightly higher returns over the next five years.
- Overweight Euro Stoxx 50 because they "will continue to have some of the most attractive near-term and long-term returns."
- "US banks will have more subdued returns than last year but will still be quite attractive in absolute terms."
- "Emerging market equities are likely to provide higher returns than investment-grade bonds and US equities, but we expect emerging market bonds to lag US high-yield bonds and bank loans."
Read more: http://www.businessinsider.com/what-goldman-is-telling-wealthy-clients-2014-1#ixzz2qJKGuJzO