A top Goldman Sachs executive is betting big on the global economy and the stock market. Anshul Sehgal, the firm’s global co-head of fixed income, currency, and commodities, shared his optimistic outlook and investment strategy.
Sehgal’s Positive Market View
Sehgal sees stocks as undervalued, pointing to strong recent earnings reports as evidence. He highlights two key factors driving his bullishness:
- AI Investment Boom: The current surge in spending on artificial intelligence is boosting GDP now, and he anticipates continued growth from AI deployment over the next decade.
- Productive Credit Boom: He believes policies like President Trump’s “One Big Beautiful Bill” (if enacted) could, combined with AI and robotics, fuel a productive credit boom, disproportionately benefiting US stocks.
Sehgal’s Trading Strategy: Long on Many Assets
Based on this positive outlook, Sehgal’s current trading strategy is heavily focused on long positions:
- Long Stocks: He’s strongly bullish on the stock market.
- Long Dollar: He’s betting on the US dollar to appreciate.
- Long Carry Trades: He’s taking advantage of interest rate differentials.
- Long Mortgage Basis: A bet on the spread between mortgage rates and other interest rates.
- Long US Treasuries and Asset Swaps: He’s holding long positions in US government bonds and asset swaps.
- Short Options on Rates: He’s hedging against potential interest rate increases.
In essence, his strategy is a mix of carry trades designed to profit from the current economic environment. He believes that all of these factors point to US stocks being significantly undervalued.
Disclaimer: This information is for general knowledge and shouldn’t be considered investment advice. Always do your own research before making any investment decisions./p>