Goldman Sachs – Jim O’Neill: Developed countries’ monetary and fiscal policies remains generous
Jim O’Neill: Developed countries’ monetary and fiscal policies remains generous
- China may see very strong growth, that may fuel commodity prices further
- Pandemic has caused remarkable rise in personal savings in US & UK
- Bitcoin and other cryptocurrencies are very volatile, won’t advise exposure
Mumbai: In a free-flowing conversation with Nikunj Dalmia of ET NOW, Jim O’Neil the former chairman of Goldman Sachs Asset Management, Former UK Treasury Minister and Chair of Chatham House spoke in-depth on his view on equity markets worldwide.
He believes vaccines may be the most important development for back-to-normalcy trade in the year and that markets guided by the that there will soon be 2-3 vaccines. He sees an increase soon in the number of people getting vaccinated. He is of the strong belief that further fiscal support is likely and also expects monetary policy to stay extremely accommodative. As per him, the combination of forces driving markets higher and he notes rally in November & December has been extraordinary.
He asks investors to keep an eye on the investing environment Trading trends in the first 4-5 days may point to trends we can expect in the New Year. He says investors need to see if Inflation is as low as everyone is presuming in the coming year. Talking about China, he says not sure If China is in a slowdown at all and appears as though the rest of the world struggling a lot more with virus compared to China. China may see very strong growth, which may fuel commodity prices further.
He noted that pandemic has caused a remarkable rise in personal savings in the US & UK. Personal savings being deployed in various markets worldwide. He also said that Bitcoin and other cryptocurrencies are very volatile, won’t advise exposure. In fact, he considers Bitcoin as a volatile version of gold.