Investment Strategy: Balancing Stocks and Bonds

Despite the current market conditions with stocks, bonds, and cash performing well, Ashish Shah, Chief Investment Officer of Public Investing within Goldman Sachs Asset Management, suggests that a balanced portfolio with a mix of stocks and bonds is still the way to go. While equities present growth opportunities, Shah believes that balancing portfolios with bonds is important to cover the downside of economic growth. He points out that the risk-return ratio looks more favorable for bonds than for stocks at the moment. With a positive outlook on bonds, Shah suggests that opportunities for total return in bonds are likely to arise.