A Goldman Sachs executive says the financial giant’s Fixed Income, Currencies and Commodities (FICC) team is a “seven out of ten” in the domestic stock market.
Anshul Sehgal, global co-head of Goldman’s FICC team, says in a new interview that they scored a “seven out of ten” on shares in January, with a plan to increase that number if valuations become more attractive.
“They did. We went to a nine. We never got to a 10. We were waiting for a further pullback. And now, with this rebound, we’re back to a seven. We do want to ride the wave. We think there’s a big question mark as to how far the domestic stock market goes. Remember, these seven companies, or American technology companies in general, have a monopoly on these technologies in the free world. And these will be deployed very broadly, not just in the United States, but all over the world.” And they have the potential to really change the way life works. So we want to be invested. But we’re back to a seven out of ten, waiting for better entry points to pick it up again.
Sehgal says they are not interested in bonds due to the lack of growth trajectory.
“Energy security is a big thing. So we like energy. So that’s where we’ve rotated some of our surplus that we had deployed in the tech sector. We think energy security, both because of AI and because of geopolitics, is going to be a dominant theme. Defense, the same way. None of this is going to change much. None of this is as exciting an opportunity as AI. AI is something that spans generations. These are transactions. So we’ve rotated some of our allocations that way. And we don’t really have much else. So we’re about seven out of ten on energy.
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