Goldman Sachs’ Chief Strategist for Global Banking and Markets, Josh Shifrin, favors five-year U.S. Treasury bonds as a potential investment, anticipating a rate cut by the Federal Reserve in September. Shifrin argues that these bonds are currently undervalued at yields of 3% to 4%, offering stability amid volatile market conditions. As of August 19th, their yield stands at 3.85%, down significantly from the beginning of the year, reflecting a growing expectation for an easing monetary policy by the Fed. Shifrin predicts that the Fed will cut interest rates by a quarter-point at its upcoming meeting, potentially starting a longer-term easing cycle that could last until 2026.