Goldman Asset $15 Billion Manager Sees Wild Markets, Tame Gains
- Volatility is interfering with my sleep, Suneil Mahindru says
- But it also creates opportunities for stock pickers, he says
This slow shutter effect photograph shows traders waiting as the Indonesian Stock Exchange closed their trading activities in Jakarta on October 9, 2008. The Indonesian Stock Exchange suspended trading for a second straight day following a drop of more than 10 percent amid a rout in global markets. The exchange suspended trading for only the second time in its history after the main index plunged 10.4 percent. AFP PHOTO/Bay ISMOYO (Photo credit should read BAY ISMOYO/AFP/Getty Images)
Photographer: Bay Ismoyo/AFP via Getty ImagesSuneil Mahindru expects a wild ride in the world’s stock markets and not that much to show for it, at least compared with easier times in the past.
The chief investment officer for international equities at Goldman Sachs Asset Management, who oversees about $15 billion, says bouts of volatility will continue as nervous investors dump shares at even the slightest hint of bad news. Yearly returns on stocks will probably be in the mid-single digits as low inflation and high debt constrain growth in the biggest economies, he says. That’s about in line with the average over the past two decades, though down from the 12 percent average throughout the recovery from the 2008 crisis.