Why Market Fundamentals Are Better Than You Think

The transcript discusses the market's positive reaction to Chair Yellen's news, highlighting a 10% rally in equity markets. Goldman Sachs believes fundamentals are stronger than market suggestions, with constrained but positive returns expected. The US consumer is seen as strong, influencing the Fed's actions. The firm is underweight on commodities, focusing on secular growth opportunities like consumer and banks.

What was the market's reaction to Chair Yellen's news according to the transcript?

• The market reacted negatively.

• The market was indifferent.

• The market liked the news and rallied.

• The market was confused.

What is the stance of Goldman Sachs Asset Management on equity markets?

• They believe fundamentals are worse than markets suggest.

• They are neutral on equity markets.

• They believe fundamentals are better than markets suggest.

• They think equity markets will decline.

What is the main reason for the Fed's recent actions according to the transcript?

• A strong US consumer.

• Global events outside the US.

• Inflation concerns.

• Domestic economic issues.

What is the position on commodities in the discussed portfolios?

• Overweight commodities.

• Underweight commodities.

• Neutral on commodities.

• Commodities are not considered.

Which sectors are preferred over commodities in the investment strategy?

• Technology and healthcare.

• Energy and materials.

• Consumer and banks.

• Real estate and utilities.