1 Goldman Sachs Global Investment Research. As of September 30, 2022.
Glossary
FX is foreign exchange market.
G10 consists of eleven industrialized nations that meet on an annual basis or more frequently, as necessary, to consult each other, debate and cooperate on international financial matters. The member countries are Belgium, Canada, France, Germany, Italy, Japan, the Netherlands, Sweden, Switzerland, the United Kingdom, and the United States, with Switzerland playing a minor role.
Hawkish refers to more aggressive monetary policy, the opposite of Dovish.
MSCI EAFE Index (Unhedged) is a market capitalization weighted composite of securities in 21 developed markets.
MSCI EAFE Index (Local) is a market capitalization weighted composite of securities in 21 developed markets, and its local performance is calculated in 13 different currencies, including the Euro.
Risk assets are those with a high degree of risk and volatility, such as such as equities, high-yield credit, commodities and currencies.
Safe-haven assets are financial instruments that are expected to retain, or even gain value during periods of economic downturn.
Terminal rate is the peak spot where the benchmark interest rate — the federal funds rate — will come to rest before the central bank begins trimming it back.
Risk Considerations
Equity securities are more volatile than fixed income securities and subject to greater risks. Small and mid-sized company stocks involve greater risks than those customarily associated with larger companies.
Investments in foreign securities entail special risks such as currency, political, economic, and market risks. These risks are heightened in emerging markets.
The currency market affords investors a substantial degree of leverage. This leverage presents the potential for substantial profits but also entails a high degree of risk including the risk that losses may be similarly substantial. Such transactions are considered suitable only for investors who are experienced in transactions of that kind. Currency fluctuations will also affect the value of an investment.
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Diversification does not protect an investor from market risk and does not ensure a profit.
Indices are unmanaged. The figures for the index reflect the reinvestment of all income or dividends, as applicable, but do not reflect the deduction of any fees or expenses which would reduce returns. Investors cannot invest directly in indices.
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Date of First Use: December 15, 2022. 299812-OTU-1710163
