Asset AllocationJune 8, 2021

CIOs Favor Growth Stocks, Shun Bitcoin, Goldman Sachs Survey Finds

Investment chiefs also said they were bullish on China A shares and expect inflation to peak in the first half of 2022.

Reported by Michael Katz

Chief investment officers are unimpressed with the trendiness of Bitcoin, which they named as their least favorite investment, according to a recent survey from Goldman Sachs.

The firm held two roundtable discussions last week with 25 CIOs from various long-only and hedge funds who were surveyed on their views and outlook. When asked to name their favorite investment style/asset class, approximately 55% of the CIOs named growth, followed by value at 30%.

Meanwhile, approximately 35% of the CIOs said Bitcoin was their least favorite investment style/asset class, followed by approximately 25% who said new initial public offerings (IPOs) were their least favorite.

The majority of CIOs, or approximately 55%, said they expect the Federal Reserve to start tapering during the first half of 2022, and anticipate the first US interest rate hikes to take place during the second half of next year. Approximately 45% of the CIOs said they expect inflation to peak in the first half of 2022, while 35% forecast it to peak at some point beyond 2022. Additionally, 45% said inflation and interest rates were their biggest concern for the market, while one-quarter said COVID-19 deterioration was their main worry.

And when asked which Asian market they were most bullish about, approximately 35% named China A shares, while approximately 30% said they were most bullish about Japan’s Nikkei 225. At the opposite end of the spectrum, 40% of the CIOs said they were most bearish about investments in the Association of Southeast Asian Nations (ASEAN), while one-fifth were most bearish about the Taiwan Stock Exchange.