LONDON (Reuters) - Goldman Sachs’ investment management division is recommending clients buy both sterling and oil, the CIO of its strategy group said on Wednesday.
“We see some upside to oil prices,” said Sharmin Mossavar-Rahmani, CIO of the group which provides investment services to high-net worth individuals, families and institutional investors.
She was also upbeat on Britain’s sterling, saying that signs of Bank of England interest rate rises on the horizon could spark a rebound in the currency which has fallen over 8 percent against the dollar since April.
“There is a 10 percent appreciation potential there,” Mossavar-Rahmani said, adding she and her colleagues saw it getting to $1.41 - $1.42 in the next 12 months with the pace dependent on how soon the BOE rate hikes happened.
Goldman’s investment management division is separate from its main investment bank operations. It also has an asset management division which sits within the IM arm, although that also has its own views on asset market values and directions.
Reporting by Marc Jones, writing by Karin Strohecker, editing by Mike Dolan