Earnings growth to drive equity markets: Goldman Sachs

 

Earnings growth to drive equity markets: Goldman Sachs

Earnings growth will be the main driver for global equity markets over the next year as the world economy picks up, the chief global equity strategist at Goldman Sachs told CNBC.

Peter Oppenheimer told CNBC Europe’s “Squawk Box” on Monday that a combination of an improving economy with low inflation and interest rates set the scene “for a pick-up in profitability and equity prices” over the next year and beyond.

He forecast the U.S. economy would grow 3.8 percent at an annualized rate by next July but because inflation was so low and the output gap still large, interest rates could stay low probably until early 2016.

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