Equities, corporate credit get a downgrade from Goldman


"We think the likelihood of a rise in government bond yields has increased and see this as a key aspect of the near-term macro outlook," says analyst Anders Nielsen as Goldman Sach's Global Opportunity Asset Locator (GOAL) downgrades equities to Neutral over the next 90-day period.

This is a short-term call, says Nielsen, reminding his team's continuing to be Overweight equities over the next 12 months.

The outlook for corporate credit is a bit more dour, with that asset class being downgraded to Underweight over both the next 3 and 12 months. Most at risk, says Nielsen, are investment grade credits given that spreads there are the tightest.

Broad equity ETFs: VV, SCHX, FEX, JKD, EQL, IWL, EEH, ERW, FWDD, SYE

IG Bond ETFs: LQD, CORP, CRED, QLTA, COBO, IGS, CBND, IGU, QLTB

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