World Economy

Goldman Sachs: Stocks May Fall More

Goldman Sachs: Stocks May Fall MoreGoldman Sachs: Stocks May Fall More

The China-led rout that is sending shock waves through global markets may get worse, and if it does, that’s when investors should turn back to equities, told Goldman Sachs Group Inc.’s Christian Mueller-Glissmann to Bloomberg.

The managing director for portfolio strategy is neutral on global stocks -- and has been since August -- but he says any further drops would create opportunities to invest. He prefers European shares because they’re cheaper than U.S. ones, and the region’s companies have bright earnings-growth prospects, according to him.

“After such a sharp correction, from a valuation point of view, you start to build that buffer that you didn’t have at the beginning of December,” Mueller-Glissmann said in a phone interview from London last week. “You do have the potential to deliver high single-digit earnings growth. Europe should do well.”