Goldman Sachs Asset Management (GSAM) executives forecast the U.S. economy to grow at about 2% in the second half of 2024, with flat equity indexes due to declining earnings growth and political anxieties. Despite the complex investment landscape, GSAM sees opportunities, particularly in AI stocks. “It’s absolutely a soft landing,” said Lindsay Rosner, head of multi-sector investing at GSAM. She expects the Federal Reserve to start cutting interest rates in September, benefiting the fixed income market, especially high-yield bonds and structured credit.
The dominance of AI-related companies, notably Nvidia, has driven stock market returns. Alexis Deladerriere, global equity portfolio manager at GSAM, advises diversifying AI exposure. With decelerating earnings growth and political uncertainties, U.S. stocks are expected to remain flat. Deladerriere also highlights the attractiveness of Indian and Japanese equities, citing AI trends, climate change initiatives, and Japanese corporate governance reforms as key factors.