Goldman Sachs CEO Still Sees Opportunities in Emerging Markets

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.


Alfonso Esparza

Alfonso Esparza

Senior Currency Analyst at Market Pulse
Alfonso Esparza specializes in macro forex strategies for North American and major currency pairs. Upon joining OANDA in 2007, Alfonso Esparza established the MarketPulseFX blog and he has since written extensively about central banks and global economic and political trends. Alfonso has also worked as a professional currency trader focused on North America and emerging markets. He has been published by The MarketWatch, Reuters, the Wall Street Journal and The Globe and Mail, and he also appears regularly as a guest commentator on networks including Bloomberg and BNN. He holds a finance degree from the Monterrey Institute of Technology and Higher Education (ITESM) and an MBA with a specialization on financial engineering and marketing from the University of Toronto.
Alfonso Esparza