Here's what Goldman Sachs CEO Lloyd Blankfein is telling clients about uncertainty in the market
Business Insider
Published Feb 09, 2017 06:53AM ET
Updated Feb 09, 2017 09:10AM ET
Goldman Sachs (NYSE:GS) CEO Lloyd Blankfein has heard enough people talk about uncertainty in the markets lately that, he says, it's starting to sound "trite."
So in said at the World Economic Forum in Davos, Switzerland, in January.
h2 'Change in general creates opportunity'/h2In this week's video, he pointed to some potential adjustments ahead, including diverging currency rates as a result of diverging economic performance.
"The cost of that divergence, you'll get differences in interest rates that could very well lead to differences in currency rates," Blankfein said.
But that doesn't mean we're in unprecedented times, he said.
"It's a vanity, always, at any given moment, to think, 'My goodness we have challenges of a dimension we've never seen before — the world is more uncertain,'" he said.
"It always seems uncertain when you're living in it, and it always seems so simple and sure when you're looking back at it."
Instead, Blankfein said, we're simply undergoing a change from a cycle of low economic activity, very low interest rates, and a high level of pessimism about the future. Now markets are seeing more growth potential, more opportunity, and more optimism.
"So I'd say change in general creates opportunity," he said, "but change from a pessimistic state of mind to one of more optimism is the better of the two possibilities."
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Written By: Business Insider
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