Goldman Optimistic About Japan And European Stocks

Goldman Sachs is most bullish on Japanese and European equities in 2014, according to the investment bank’s latest asset allocation report, maintaining an overweight rating on both markets.

It set a 2014 target of 1450 for Japan’s Topix index, and 360 for the Stoxx Europe 600 index – or 16 and 12 percent higher than current levels, respectively. The indexes have risen 45 and 15 percent so far this year.

“We expect steady progress on the Abenomics’ growth reforms during 2014, think the reflation story will support returns, and see the positioning as relatively light,” Goldman strategists wrote in a report on Tuesday.

In Europe, Goldman expects corporate margins to pick up from cyclically low levels, and for that to support returns.

via CNBC

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Alfonso Esparza

Alfonso Esparza

Senior Currency Analyst at Market Pulse
Alfonso Esparza specializes in macro forex strategies for North American and major currency pairs. Upon joining OANDA in 2007, Alfonso Esparza established the MarketPulseFX blog and he has since written extensively about central banks and global economic and political trends. Alfonso has also worked as a professional currency trader focused on North America and emerging markets. He has been published by The MarketWatch, Reuters, the Wall Street Journal and The Globe and Mail, and he also appears regularly as a guest commentator on networks including Bloomberg and BNN. He holds a finance degree from the Monterrey Institute of Technology and Higher Education (ITESM) and an MBA with a specialization on financial engineering and marketing from the University of Toronto.
Alfonso Esparza