See tactical risk to emerging markets vs developed mkts: Goldman

Caesar Maasry of Goldman Sachs said, "The sharp rally across global equities has fizzled recently, with two prevalent market themes emerging. One, a search for relative value trades, and second, a concern that central banks of developed markets are 'running out of bullets', potentially marking the end of the strong developed market equity cycle since 2011.""Consequently, investors are questioning if a low 'hurdle' set by developed markets means it is time to engage in emerging markets over developed markets," he added."We agree that the medium-to-longer term outlook is starting to favour emerging markets over next 1 year but see considerable tactical risk to the emerging markets versus developed markets trade and find it too early to switch our allocation," he said.