Goldmans: Why equities are 'best buy' of our generation

Equity valuations that are reflecting "unrealistically large declines in growth and returns" present one of the best buying opportunities in a generation, according to Goldman Sachs.

In a global strategy paper published this week, Goldmans' global economics, commodities and strategy research team suggests rumours of the demise of the golden age of equities may have been greatly exaggerated. The demise of growth expectations, fuelled by concerns that return on equity and margins are set to decline, has been overdone, the paper suggests. "On balance, it appears that the markets are placing a high probability of a sustained period of fading returns and sub trend real profit growth, akin to the outcome that Japan experienced through its ‘lost decades'. "While margi...