GSAM believes the future of investing aligns with the next wave of innovation. Technological innovation continues to disrupt traditional industries and create new structural growth opportunities. The degree to which companies and investors embrace the next wave of innovation will be critical to their longevity and success. We believe the Goldman Sachs Innovate ETF may allow investors exposure to these opportunities of technological innovation, regardless of sector, geography, or market capitalization.
GSAM has analyzed the asset allocation of thousands of advisor managed portfolios over the years and found that many of those portfolios cluster closely together in terms of expected return and risk characteristics. Model portfolios may help to achieve similar outcomes to what advisors are already getting while also helping advisors realign their time, reduce regulatory and due diligence burdens, establish business continuity, and leverage institutional expertise. Model portfolios, like the Goldman Sachs S&P G-MAPs, maybe a tool to achieve the same results in a simpler fashion.
GSAM expects the long post-crisis economic recovery to continue in 2017 and prefers equities over credit and credit over rates. Broadening exposure beyond conventional stocks and bonds, identifying opportunities in emerging markets and deploying more dynamic asset allocation strategies are some ways to adapt.
The policy backdrop in the US will be particularly favorable for the economy, with looser fiscal policy, relatively easy monetary policy and a less stringent regulatory environment. Their eight-year US preeminence theme is intact and continues into its ninth year. While President-elect Trump’s initial policy measures with respect to tariffs and trade agreements risk jolting financial markets, he will likely adjust and change course as necessary to achieve his desired results.