Just six weeks into 2016, the New York-based bank has abandoned five of six recommended top trades for the year, Bloomberg reported.
“Goldman Sachs was forced out of three of its top picks for the year last month: a bet on large U.S. banks against the Standard & Poor’s 500 Index, a wager on 10-year break-evens, and a call on the Mexican peso and Russian ruble strengthening versus the South African rand and Chilean peso. The latter closed on Jan. 21 for a potential loss of 6.6%,” according to the report.
The New York-based bank closed its call for dollar strength versus an equally weighted basket of the euro and yen on Tuesday, recording a potential loss of about 5%. Goldman Sachs also ended a bet on five-year forward Italian sovereign yields versus their German counterparts for a loss of about 0.5%, according to Bloomberg.
Read alsoJ.P. Morgan slashes its 2016 crude forecast to $31.50In November 2015, Goldman Sachs put the Russian ruble into a basket of the most attractive foreign currencies and assets for 2016. The analysts believed that the ruble, along with the Mexican peso, could show significant results in the upcoming year.