A Goldman Sachs executive says the financial giant’s Fixed Income, Currency and Commodities (FICC) team is a “seven on ten” on the domestic equity market.
Anshul Sehgal, global co-head of Goldman’s FICC team, says in a new interview that they were a “seven on ten” on equities back in January, with the plan to ratchet that number up if valuations got more attractive.
“They did. We took it up to a nine. We never got to ten. We were waiting for more of a pullback. And now, with this rebound, we’re back to a seven. We do want to ride the wave. We think it is a big question mark in terms of how far the domestic equity market goes. Remember, like these seven companies, or US tech companies more broadly, do have a monopoly in the free world on these technologies. And these will be deployed very broadly, not just in the United States but the entire world. And they do have the potential to really change how life works. So, we want to be invested. But we’re back to a seven on ten waiting for better entry points to take it up again. And we plan on trading this theme in that manner.”
Sehgal says they aren’t interested in bonds because of their lack of growth trajectory.
“Energy security is a big thing. So, we like energy. So, that’s where we’ve rotated some of our excess that we had deployed in tech. We think energy security, both because of AI, and geopolitics, is going to be a dominant theme. Defense, similarly. None of this is going to change very much. None of these are as exciting an opportunity as AI is. AI is a generational thing. These are trades. So, we’ve rotated some of our allocations in that manner. And we don’t really have much else. So, we’re like seven on ten on tech. Three on ten on energy. Two on ten on defense. And no fixed income.”
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