Why Investors Should Maintain Positions in Equities

Katie Koch from Goldman Sachs Asset Management discusses investment strategies for 2017, emphasizing the importance of maintaining equity positions for yield. She highlights the potential of fiscal stimulus and infrastructure investment, particularly in a low-rate environment. Koch also provides insights into the banking sector, especially European banks, and discusses emerging markets with a focus on Chinese equities. The conversation concludes with a discussion on market volatility and the benefits of active management.

What is one reason Katie Koch suggests maintaining equity positions?

• To achieve long-term investment goals

• To increase liquidity

• To reduce investment risk

• To avoid market volatility

What is a key factor in the positive outlook for equities according to Katie Koch?

• Strong earnings and economic data

• Rising inflation

• Declining interest rates

• Increased government regulation

What is a potential benefit of increased infrastructure spending according to Katie Koch?

• Reduced government debt

• Lower inflation

• Increased job creation

• Higher interest rates

What does Katie Koch suggest about the fiscal expansion story?

• It will decrease government spending

• It is unlikely to happen

• It will be beneficial for growth and inflation

• It will lead to higher taxes

Why does Katie Koch see potential in certain European banks?

• They focus on international markets

• They are heavily regulated

• They are well-capitalized and face less competition

• They have high non-performing loans

What is a concern Katie Koch raises about the MSCI emerging market index?

• It is overly diversified

• It lacks exposure to European markets

• It includes too many state-owned enterprises

• It is too focused on technology companies

What is Katie Koch's stance on investing in the emerging market index?

• She recommends buying the index

• She advises against buying the index

• She suggests focusing on technology stocks

• She believes the index is undervalued