Senior United States (U.S.) Investment Strategist at Goldman Sachs Group, Inc. (NYSE:GS) Abby Joseph Cohen spoke with FOX Business Network’s (FBN) Liz Claman at the Milken Institute Global Conference about her concerns surrounding the bond market. Cohen said, “we think that equities are still under-value” and “one of our concerns is that the bond market, which we all like to think of is very safe, may not be so safe because yields are so low.” Cohen went on to say that a way to protect yourself from the bond market is to “always have a diversified portfolio.”
Excerpts from the interview are below:
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On whether it is too late for investors to get into equities:
“We think that equities are still under-valued, but not as much as they were. The another thing to think about of course, though, is risks in other asset categories. One of our concerns is that the bond market, which we all like to think of is very safe, may not be so safe because yields are so low. At some point in the future, not right away yields will start to rise and the mathematics of bonds, basically say that when yields go up the prices of bonds go down. So many individual investors who are not that familiar with bond investing may discover that they may have some principle lost in their accounts.”
On whether you can lose money investing in Treasuries:
“You certainly can. It all depends on what the yield is. And one of our thoughts of course is that investors need to always have a diversified portfolio.”
On whether Cohen will stay at Goldman Sachs Group, Inc. (NYSE:GS):
“I love what I do. My research now is really at the intersection of economics, markets and government policy. We deal with issues like longer term economic development in the United States, regions of the United States and around the world and challenges to that growth, including climate risk and for me this is a wonderful way for me to bring my years of experience to help investors and maybe some government officials make good decisions for the future.”
