Oct. 23 (Bloomberg) -- Goldman Sachs Group Inc. shouldn’t repeat its error of pulling back in emerging markets while they’re weak this year, President Gary D. Cohn said.
“If the industry has made a mistake, or we at Goldman have made a mistake in emerging markets, it’s that we’ve tended to contract our business at the bottom of the cycle,” Cohn told Stephanie Ruhle in a Bloomberg Television interview. “You need to invest at the bottom of the cycle to be ready for the top.”
Chief Executive Officer Lloyd C. Blankfein said three years ago that emerging markets are one of the firm’s biggest opportunities and cautioned that they “will not move in a straight line.” Economic growth in nations such as Brazil and China has slowed from post-crisis highs, leading to a 2 percent drop in the MSCI Emerging Markets Index so far this year, a span that included a 9.1 percent tumble during the second quarter.
“They’re called emerging markets because they’re more volatile than G-7 markets, than developed markets that are more predictable,” Cohn said. “We’re seeing a natural cycle in the emerging markets. Overall, we still are very bullish.”
Goldman Sachs said this week that J. Michael Evans, a vice chairman who led emerging-markets businesses, is retiring after more than 20 years at the bank.
“Someone coordinating what we’re doing in the various growth markets around the world is important, and we will ultimately fill that seat,” Cohn said.
--Editors: Rick Green, Dan Kraut