Goldman's Outlook

This isn't a post about Goldman's SEC troubles. Rather, Goldman released its monthly Market Pulse research piece, and here is a summary of their investment convictions at this juncture:

• U.S. economy headed for stronger growth in Q2
• That should be followed by a slowdown in 2H10, followed by a reacceleration in 2011
• Maintain outlook for disinflation vs. signs of inflationary problems
• See no reason why FOMC would raise rates in 2010
• Crude oil should stay in $80-90 range this year, top $100 in 2011
• 10-yr yield should ease back towards 3.25% by year-end
• 2010 target for S&P 500 remains 1250
• Gold should stay under $1165 in 2010, but hit $1350 in 2011
• Emerging market stocks now slightly expensive relative to developed mkts
• Small caps look attractive
• High yield credit appears attractive

In a nutshell, that's what GS is advising to their asset management clients, in terms of how to position portfolios for the near-future.