Goldman Sachs AM heeds caution about running into energy stocks

Brent crude up 20% over the month

Despite a rise in the price of oil following the escalation of conflict between Israel and Iran, Goldman Sachs Asset Management (GSAM) has told investors to exercise caution before flooding energy stocks.

In its mid-year outlook on Wednesday (18 June), GSAM's global co-head of quantitative investment strategies, Osman Ali, said that his firm is "more cautious" on energy at the moment.  "Despite the oil shock we are observing now and the outperformance of energy equities, I think you should be cautious of that sector in general due to the broader weakness in that complex," he said.  Friday Briefing: Energy's fall from grace is understandable but a comeback will be tough Ali noted that while the lofty valuations of US equities will likely drop, when allocating to sectors and geographi...