Thursday, May 30, 2013

Goldman: Keep Calm and Carry On Buying

From CNBC: Global stocks may have been on a wild ride of late, but the world's biggest investment bank has told investors they should see rising U.S. Treasury yields as positive and should continue to buy equities.

"While there are certainly risks around QE (quantitative easing) being withdrawn we continue to view rising bond yields as relatively benign for European equities," Goldman Sachs' European research team said in a report released on Thursday. "Indeed provided it is better growth that is driving yields upwards (which is what we expect) we would argue it is supportive. We find a positive relationship between real yields in the U.S. and European equities."

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