Forex Flash: Corporate sector equities expected to grow in 2013 – Goldman Sachs

FXstreet.com (Barcelona) - There is a relationship between the ERP and cash/asset ratios; until recently, high levels of uncertainty have encouraged companies to hoard cash. According to the Economics Research Team at Goldman Sachs, “We expect the corporate sector to return more cash to shareholders and invest more for future growth as the ERP gradually moderates and the reward for spending continues to rise.”

Moreover, “We continue to recommend our ‘dividend yield plus growth’ basket (GSSTHIDY) and Euro Stoxx 50 2014 and 2015 dividend futures.” they add. Our capex beneficiary basket (GSSTCAPX) and M&A targets (GSTRMRG4) are also ways to reflect this theme.