A senior executive at Goldman Sachs has rated the financial giant’s Fixed Income, Currency and Commodities (FICC) team as a “seven out of ten” when it comes to the domestic equity market.
Anshul Sehgal, who serves as the global co-head of Goldman’s FICC team, shared in a recent interview that their rating on equities was at a seven back in January. The team had plans to increase this rating if valuations became more attractive.
“Valuations did improve, and we raised it to a nine. However, we never reached a perfect ten as we were waiting for a more significant pullback. With the recent market rebound, we are back to a seven. We believe in riding the wave, considering the significant impact tech companies have on the global market. While we are currently at a seven, we are waiting for better entry points to increase our rating. Our strategy involves trading this theme accordingly.”
Sehgal mentioned that they are not focusing on bonds due to their limited growth prospects.
“Energy security is a key focus for us. We see potential in the energy sector, especially with the influence of AI and geopolitics. This is why we have shifted some of our excess from tech to energy. While defense is also a priority, it does not offer the same level of excitement as AI. We have adjusted our allocations accordingly, with a rating of seven on tech, three on energy, and two on defense. We are not currently invested in fixed income.”
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