Goldman Sachs, BofA See The Lost Decade for New Markets

While regulatory reforms could continue to shrink Chinese stocks, they are unlikely to spill over into a broader emerging market complex, according to Goldman Sachs. However, concerns about China’s economic growth are justified, the creditor said in a Aug. 18 report. Developed countries outside of North Asia will continue to outperform the MSCI EM index, making them a country of “greater confidence,” it said.