Goldman Likes Stocks In Europe, Japan Over Next Year

After downgrading equities to neutral and upgrading bonds to neutral August 24, Goldman Sachs International Portfolio Strategy Research Group led by Christian Mueller-Glissmann has been reluctant to take on more risk as global growth and deflation concerns linger – despite a more dovish Fed.

Goldman notes European and Japanese stock market / currency correlations at extremes, sends investor message

In a note dated October 2, the research team notes that equity market / foreign exchange correlations are at extremes in Europe and Japan. This might indicate that weaker currencies would provide a boost to equities and also points to the need for international investors to hedge...