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Goldman Sachs asset managers see US economy, stocks slowing

Goldman Sachs asset managers see US economy, stocks slowing
(Reuters) -Goldman Sachs Asset Management (GSAM) executives expect the U.S. economy to grow at a slower clip of about 2% in the second half of 2024, they said on Tuesday, with equity indexes seen largely flat due to declining earnings growth and political anxieties. That makes the investment landscape more complex, but one that still presents opportunities, including a broader array of AI stocks, GSAM said in its mid-year outlook. "It's absolutely a soft landing," said Lindsay Rosner, head of multi-sector investing at the asset management arm of Goldman Sachs.

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Goldman Sachs Asset Management (GSAM) executives are predicting a slowdown in the U.S. economy, with growth expected to be around 2% in the second half of 2024. They also anticipate that equity indexes will remain largely flat due to declining earnings growth and political uncertainties. Despite this, GSAM sees opportunities in the investment landscape, particularly in AI stocks. The BlackRock Investment Institute (BII) also released its mid-year outlook, suggesting a real possibility of interest rate cuts in the U.S. in the second half of 2024. GSAM expects the fixed income market to benefit from falling interest rates, particularly in the high-yield bond market and structured credit. With the dominance of a small number of companies in the AI sector, GSAM is advising investors to diversify their exposure to this trend. As earnings growth slows and political anxieties rise, GSAM anticipates that U.S. stocks will remain largely flat in the second half of the year. They view Indian and Japanese equities as particularly attractive at this point, as they are seen as plays on trends such as AI and climate change, as well as Japanese corporate governance reforms.

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