Jim O'Neill: Emerging Markets No Longer Emerging But Growing

"The world is new, and the countries driving it are not the ones of past generations," Jim O'Neill, Head of Global Asset Management for Goldman Sachs (NYSE: GS) told CNBC in an exclusive interview from the firm's Summit in New York. Having coined the term BRIC (Brazil, Russia, India, China), he says those are the countries that are leading the world economy nowadays instead of the US and Europe.

O'Neill believes emerging economies are fundamental when it comes to building GDP-mirroring portfolios. "You have to have 30 percent allocation to BRIC and the rest of the emerging economies such as Mexico, Indonesia, Turkey and Korea." O'Neill calls up a new index Goldman Sachs is introducing, GIVI (Global Intrinsic Value Index) that promises less volatility going forward.

He also suggests that these economies should no longer be called "emerging", but rather "growing". "Any one of these can walk into the International Monetary Fund tomorrow and have as much or more impact than Germany."

O'Neill continues to have one of the more optimistic stances in US markets as well. "I still see the S&P hit 1,500 by this year's end," he says, calling the probability of this happening a "slam dunk."

O'Neill says that there is a current tendency of singular headlines of weakness to make the whole market turn cautious, and that it should not be the case, as companies such as Apple (NASDAQ: AAPL) prove bearish expectations wrong.