“Despite some investors becoming increasingly wary of asset valuations, Sheila Patel, the CEO of Goldman Sachs Asset Management International, has told CNBC that the current bull market has longer to run and the search for yield will continue.
“I do think that there are places you can find value,” she told CNBC Wednesday.
“If you start to believe in the U.S. recovery there is certainly a school of thought that that’s the gorilla still in global growth. And if that is coming then emerging markets is a real place to take a second look.”
Following the financial crash of 2008, investment companies around the globe were restricted as stock prices plunged to historic lows. Investors fled for safe havens, shunning riskier assets, and central banks made government bond purchases to try to inject liquidity into economies.
The following five years – a typical duration of a bull market, according to some analysts – led to a search for yield across emerging markets, flickering signs of a housing recovery in the U.S. and interest rates on fixed income falling to record lows. Last year this culminated in a stellar rally for equity markets which saw both the Dow Jones and the S&P 500 break into fresh highs. Meanwhile, bond prices have shown signs of peaking and emerging markets have fallen out of favor as investors have returned to the U.S. dollar in the anticipation of rate hikes…..”
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