Jim O’Neill, chairman of Goldman Sachs Asset Management, asked In a Saturday opinion piece whether parallels being drawn to the recession of 2008 were valid, given the state of the markets and global economic turmoil. And, he asks, are the G-7 and European economy in for a stretch of weakness like that endured by Japan?
O’Neill’s short answer is: No. He’s optimistic.
“Generally speaking, collectively, we remain quite sanguine about the world,” he wrote. “We think that the markets are excessively worried about the U.S. and, while there is less agreement amongst us about Europe, we are impressed by the policy response.”
In terms of equities, he added, he believes that there are “very attractive” valuations on offer, including in the US financial sector. In fixed income markets, “while there is little value, the strength of the U.S. and European policy response has been such that markets have momentum from the policy support, at least for now.”