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Goldman’s Bullish Market Call Makes Aggressive Assumption

Fast Money Portfolio
Fast Money Portfolio

Goldman Sachs is certainly bullish on the markets. The firm says stocks currently present the buying opportunity of a lifetime.

“The prospects for future returns in equities relative to bonds are as good as they have been in a generation,” wrote Peter Oppenheimer, the firm’s chief global equities strategist, in the 40- page strategy paper.

“Given current valuations, we think it’s time to say a ‘long good bye’ to bonds, and embrace the ‘long good buy’ for equities as we expect them to embark on an upward trend over the next few years.”

But, as with any story, there’s always another side.

Keff Kronthal, managing partner and co-CIO at KLS Diversified Asset Management says there's something about Goldman's call investors should know.

“If you look at the last page of their report they cite 10-year growth from 2010 to 2019 of 4.3% globally. I really struggle with that assumption.”

In fact, he struggles so much he's can't get behind the Goldman call.

"Goldman's assumption of 4.3% is very aggressive,” he says. If you agree, then buying stocks might not be the opportunity of a lifetime after all.

Rather than stocks, Kronthal suggests looking at alternative areas of the bond market, specifically higher yield loan funds. “I think if you can buy triple B commercial real estate 10-year debt that yields 8.25%, I think that’s pretty attractive,” he says.





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Trader disclosure: On Mar 21, 2012, the following stocks and commodities mentioned or intended to be mentioned on CNBC’s "Fast Money" were owned by the "Fast Money" traders; Tim Seymour is long BAC; Tim Seymour is long INTC; Tim Seymour is long CSCO; Tim Seymour is long PEP; Tim Seymour is long DELL; Tim Seymour is long IBM; Tim Seymour is long HPQ; Tim Seymour is long AAPL; Brian Kelly is long SMH; Brian Kelly is long QQQ ; Brian Kelly is long SPY CALLS; Brian Kelly is long IWM CALLS; Brian Kelly is long MEXICAN PESO; Brian Kelly is long US DOLLAR; Brian Kelly is short EWA; Brian Kelly is short EWY; Brian Kelly is short EWH; Brian Kelly is short EWY AUSSIE $; Brian Kelly is short NEW ZEALAND $; Pete Najarian is long AAPL; Pete Najarian is long AAPL CALLS; Pete Najarian is long C; Pete Najarian is long C CALLS; Pete Najarian is long JPM CALLS; Pete Najarian is long BAC CALLS; Pete Najarian is long INTC; Pete Najarian is long YHOO; Pete Najarian is long COP; Pete Najarian is long PEP; Pete Najarian is long HPQ; Pete Najarian is long SCCO; Josh Brown is long AAPL; Josh Brown is long JPM; Josh Brown is long GDX; Josh Brown is long GLD; Josh Brown is long XLU; Josh Brown is long INTC; Josh Brown is long MRO; Josh Brown is long SBUX; Josh Brown is long COP; Josh Brown is long DELL

For Sara Senatore
Bernstein currently makes a market in SBUX

For John Kronthal
Nothing to disclose

For Paul Hickey
Nothing to disclose

For Philip Verleger
Nothing to disclose

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