Goldman Sachs Chairman and CEO Lloyd Blankfein told CNBC that he’d be “long, not short” emerging markets in the long term, despite the sharp selloff in their currencies Friday.
Blankfein—who appeared on CNBC’s “Squawk Box” in an interview from the World Economic Forum in Davos, Switzerland—did caution that emerging market currencies are high yield but also high risk.
“If somebody said, ‘Take a position on the emerging markets and you can’t change your mind for fill-in-the-blank—one year, five years—I’d be long, not short. It doesn’t mean I’m going to feel good about it,” he said.
The emerging market currency risk has become a macro event, he added. “All of these countries that are far apart on the globe are very close in investors’ minds.”
Emerging markets currencies came off their lows, and equities responded, with futures recovering from their steepest losses Friday.
Latest posts by Alfonso Esparza (see all)