Goldmans backs Asia as the market to beat until 2015

Goldman Sachs expects strong returns from equities to continue in the next three years, led by the Asia ex Japan region.

It expects annualised returns of 21.3% from this region, driven by strong economic earnings growth, good dividend yields and some expansion in multiples. Of all global regions, the analysts expect the US to show the slowest growth, with the annual forecast at around 9%, as the US market "has already returned to its pre-crisis peak and the potential for performance therefore is smaller". The forecast sees Europe delivering a 19% annualised total return and Japan following slightly behind with returns of 15%. In the research note, analysts said: "With a 2015 horizon, all regions look...