This is exchanges to Goldman Sachs where people from our firm share their insights on developments

currently shaping markets, industries, and the global economy.

I'm Jake Stewart, Global Head of Corporate Communications here at the firm.

The word historic gets thrown around a lot and not always correctly, but with $10 trillion of government bonds offering negative yields today, this is indeed at least new territory for the markets.

To discuss what's on the mind of investors, I'm

very pleased to be joined by Peter Oppenheimer, the chief global equity

strategist for Goldman Sachs research. Peter, welcome to the program.

Hello Jake. So Peter, since 2012 you've published a series of reports on what you've called The Long Goodbye,

which is not a Raymond Chandler novel, but, uh, B, you, why? An argument that's favored stocks over bonds. Stock valuations around the

world have risen significantly over that span. How has your view changed one of the various

scenarios going forward?

Well, the reason we argued that it was a long goodbye, a great opportunity for investors

in riskier assets like equities back then, was not because the future in 2012 seemed very certain, but that valuations were very low,

and we thought investors were being, if you like, rewarded for taking some risk.

As you quite rightly say, Jake, three or four years later, valuations have gone up a lot in all financial assets because bond yields have fallen, and that makes the absolute argument harder to make.

We think absolute returns in financial assets will be lower moving forward.

But on a relative case, we still think there are better risk-adjusted opportunities

in equities than bonds.

So the case underlying the long goodbye I think still holds.

Having said that, there are different ways in which it can evolve from here,

and our recent report really tries to focus on those. We have

taught since the beginning of this year of a equity market environment that we

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