News Topical, Digital Desk : Goldman Sachs' latest report clearly states that emerging markets will outperform global equities in the next decade, and India will be at the forefront. According to the report, GLOBAL STRATEGY PAPER NO. 75, emerging markets will deliver an annual return of 10.9 percent over the next ten years, significantly higher than the US's 6.5 percent, Europe's 7.1 percent, and Japan's 8.2 percent. This estimate has made India a top choice for global investors.
The report predicts the fastest CAGR in the world.
According to the report, earnings per share (EPS) growth will be the strongest in India and China, determining future returns. The report estimates a CAGR of 13% for India, the fastest in the world. It states that policy reforms and improved market structures will support India's growth over the next decade. According to Goldman Sachs, earnings growth is the biggest engine that will drive the equity market's future. The report also states that valuations are currently high, but they are not harming the global outlook. The company estimates that global equities could deliver an average annual return of 7.7% over the next ten years, as global earnings will grow at a rate of approximately 6%, with the remaining return coming from dividends. Regarding the US market, the S&P 500 is projected to deliver an annual return of only 6.5% over the next decade, with best-case and lowest-case scenarios ranging from 3% to 10%. The report clearly states that high US valuations will drive investors toward emerging markets, and this shift will benefit India the most. This Goldman Sachs report is significant news for India, as it suggests that India will be the world's strongest economic story in the coming decade.
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