VIEW: Tuesday saw Goldman Sachs note.......>

EQUITIES: VIEW: Tuesday saw Goldman Sachs note that "generally, strong periods

of cyclical & value outperformance coincide with an inflection point in growth

momentum indicators. From this perspective, the recent experience has been

understandable. Econ data are starting to improve in places like China, and

April will likely mark the nadir in terms of global & European growth. More

recent data are consistent with a sizeable upturn in industrial activity in May.

However, as a result of this rebound in equity prices, valuations have reached

high levels again. Most equity markets now trade at 24-month forward P/E ratios

not seen since the lofty days of the late 90s. We see downside risks in the near

term, followed by modest returns in equities, albeit better than in most other

assets. In terms of style, it is understandable that a genuine inflection point

in the economy, from such a low base, would trigger a powerful rotation towards

cyclical, high beta & weaker balance sheet companies. But, unless the underlying

fundamentals of low nominal growth, bond yields & earnings change, or there is a

sig. challenge to the digital revolution, we would see such rotations as

tactical, or short-term, not secular."