Goldmans' six top trades for 2012

Goldman Sachs' global markets team has revealed six key trading recommendations for 2012, based on forecasts of a deeper recession in Europe, a slowdown in the US and below trend growth in China.

The team said its strongest market views are, unsurprisingly, based on the notion that market pressure for a solution to the eurozone crisis will dominate early on in the year. Other themes include the possibility of more radical policy intervention via further QE in the US and UK, further currency intervention by the Swiss National Bank, and the relative resilience of parts of the emerging world. 1. Short European high yield credit Goldmans is forecasting a downside of around 16% in European equity markets over the next three months. But its first key trade focuses on European cre...