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U.S. stocks have "limited upside" from here, given the macroeconomic backdrop — and investors should be looking for better opportunities elsewhere, according to Goldman Sachs Asset Management. The U.S. economy has been surprisingly resilient in the face of the Federal Reserve's aggressive monetary policy tightening over the last two years, defying expectations of a 2023 recession. Though GSAM's base case is for the Fed to engineer a soft landing and for the U.S. economy to avoid recession, James Ashley, head of international market strategy, told CNBC on Wednesday that if a recession were to come, it would be this year. "The Fed only began to hike in March of '22, so when we're talking about recession risks in 2023, that would have assumed a very rapid passthrough from the transmission of monetary policy into the real economy. In other words, it was premature," Ashley said.
Persons: James Ashley, Ashley Organizations: Goldman Sachs Asset Management, Fed, CNBC Locations: U.S
Investors shouldn't expect too many changes in 2024, according to the top investing minds at Goldman Sachs Asset Management (GSAM). GSAM strategists suggested that investors are overlooking the risk that the conflicts cause a sharp slowdown. Higher bond yields usually reflect higher risk since investors demand better compensation for going out on a limb. But it's not just junk bonds that have enticing yields — Wilson-Elizondo said debt for investment-grade firms pays mid-single-digit rates despite boasting robust fundamentals. Sophisticated investors can enhance their returns further with private credit, which Wilson-Elizondo said can offer lofty yields of 11% to 12%.
Persons: they're, Alexandra Wilson, Elizondo, GSAM's, Ashish Shah, Shah, David Rosenberg, Wilson, Michael Bruun, it's, Goldman Sachs, Bruun, " Bruun, — Wilson Organizations: Investors, Goldman Sachs Asset Management, Federal Reserve, Consumers, BSE, Nikkei Locations: GSAM, Israel, Ukraine, India, Japan, China
Biomethane, a lower carbon alternative to fossil-based natural gas, is produced from the decomposition of organic waste and is seen as a key plank in efforts to lower carbon emissions in the European Union. Verdalia Bioenergy will invest in both early-stage biomethane development projects as well as existing assets with the aim of contributing to Europe's decarbonisation and energy security agenda, the asset manager said on Monday. It has already signed an agreement to purchase a portfolio of biomethane projects with a total capacity of around 150 gigawatt hours per year (GWh/year) in mid-stage development in Spain. Biomethane can be used in the same way as natural gas and delivered using the same infrastructure, yet comes without the same high level of climate-damaging emissions. Biogas and biomethane production has already created 210,000 green jobs in Europe and is saving 60 million tons of greenhouse gas emissions per year, according to the European Biogas Association.
Small-cap stocks may be poised for a comeback this year, according to a strategist at Goldman Sachs Asset Management. James Ashley, head of international market strategy at GSAM, told CNBC's "Squawk Box Europe" Monday that small caps offer "great opportunities" for those looking to capitalize in the current economic climate. According to GSAM's research, historically, small caps have delivered when inflation is high but falling, a phenomenon known as disinflation. While there are attractive options in other markets, Ashley said small caps were unique in the current environment with "some great opportunities there." He added that exposure to small caps would offer access to secular growth usually not found elsewhere – especially given that valuations are currently near historic lows.
LONDON, Jan 10 (Reuters) - Goldman Sachs Asset Management, the fund arm of Goldman Sachs (GS.N), said on Tuesday it had raised $1.6 billion for its first private equity fund focused on investing in companies providing climate and environmental solutions. The final close of GSAM's Horizon Environment & Climate Solutions I comes as investors increasingly turn their attention to companies that can help in the world's fight against global warming. The fund, launched in 2021, provides so-called "growth capital" to companies further along in developing solutions in clean energy, sustainable transport, waste and materials, sustainable food and agriculture and ecosystem services. While investors have long invested in real assets such as wind and solar, or in early stage venture capital, the demand for the fund showed they were increasingly willing to back bigger companies, Pontarelli said. In December private equity firm General Atlantic launched a $3.5 billion climate fund while a month earlier Morgan Stanley Investment Management launched a $1 billion private equity strategy to invest in companies that will help reduce 1 gigatonne of carbon dioxide emissions.
Amazon was the biggest poacher of Goldman tech talent from June to August. The organization tracked the LinkedIn profiles of people who left Goldman Sachs and picked up another job from June through August. Wall Street's tech hiring ambitions ramp up as tech powerhouses and startups pull backNonetheless, the demand for tech talent on Wall Street has remained strong. JPMorgan, the biggest beneficiary of the departures, hired 18 former Goldman Sachs employees. Citi and Morgan Stanley were also among the top poachers of Goldman talent, with the firms both scooping up 12 Goldman employees each.
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