Goldman Sachs Sees Lackluster Performance or Correction In Asian Stocks in 2010
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In a report today Goldman Sachs said they see sluggish performance for Asian equities in 2010, after the tremendous rally off the March lows.
The firm said the macro momentum in Asian equities may roll over in 2010, cresting some time late in Q1 or Q2. They note that Asian markets perform worse when macro momentum wanes, saying "average returns were lower and instances of negative returns were more frequent when macro momentum was decelerating."
Goldman said said higher valuations and potentially flagging macro momentum could lead to a period of lackluster performance or a correction. They concluded, "We think investors should consider moderating exposure and/or hedging."
Related ETFs:
iShares FTSE/Xinhua China 25 Index (NYSE: FXI)
iShares MSCI South Korea Index (NYSE: EWY)
iShares MSCI Singapore Index (NYSE: EWS)
The firm said the macro momentum in Asian equities may roll over in 2010, cresting some time late in Q1 or Q2. They note that Asian markets perform worse when macro momentum wanes, saying "average returns were lower and instances of negative returns were more frequent when macro momentum was decelerating."
Goldman said said higher valuations and potentially flagging macro momentum could lead to a period of lackluster performance or a correction. They concluded, "We think investors should consider moderating exposure and/or hedging."
Related ETFs:
iShares FTSE/Xinhua China 25 Index (NYSE: FXI)
iShares MSCI South Korea Index (NYSE: EWY)
iShares MSCI Singapore Index (NYSE: EWS)
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