① Goldman Sachs The report predicts that the global stock market bull run will continue into 2026, with an average global stock return of approximately 13%, primarily driven by corporate earnings; ② The report emphasizes diversified investment and points out that opportunities are increasing across different sectors; ③ Goldman Sachs believes that investors should broaden their investment scope, focusing on emerging markets and diversifying their portfolios across different sectors.
A recent report from Goldman Sachs on Wall Street indicates that the global stock market bull run is expected to extend further into 2026, with investment returns no longer limited to US tech stocks as earnings growth continues in various markets.
In its latest global equity investment strategy outlook, Goldman Sachs remains optimistic about the stock market next year, but expects stock index returns to be lower than those in 2025.
A team of strategists led by Peter Oppenheimer predicts that global stock prices will rise by an average of about 13% in 2026, or nearly 15% if dividends are included. This growth is primarily driven by corporate earnings rather than valuation expansion.
The team believes that, given its macroeconomic forecast of continued global economic expansion and its prediction of the Federal Reserve's moderately accommodative policy, "even though stock market valuations are high, the stock market is unlikely to experience a significant decline or bear market unless an economic recession occurs."
Diversified investment
Currently, there is a growing call for diversified investment. The long-term dominance of US stocks is expected to end by 2025, with European, Chinese, and broader Asian markets outperforming the US market in terms of dollar-denominated returns.
This expansion is accompanied by an increase in opportunities across different sectors. Goldman Sachs points out that the US still leads in growth investing; however, markets outside the US, particularly in Europe, outperform in value investing.
Goldman Sachs strategists wrote, "For the first time in nearly 15 years, the U.S. stock market has underperformed, but investment diversification strategies are working, and returns are showing a diversified pattern across sectors, with many non-technology sectors also performing strongly."
Goldman Sachs also pointed out that the declining correlation between stocks is one reason why they will focus more on individual return creation in 2026.
As the tech industry becomes increasingly polarized, strategists believe investors are becoming more able to distinguish between winners and losers, rather than viewing the entire market as a single investment target.
The team further stated, "This also reflects that investors are beginning to pay more attention to those belonging to artificial intelligence." The potential beneficiaries are not just large tech companies. This includes the application layer ; in our view, investors will increasingly focus on companies outside the tech sector that can most effectively leverage artificial intelligence and related technologies to improve profit margins and productivity, particularly by 2026.
In summary, Goldman Sachs believes that investors should continue to hold their portfolios while expanding their investment scope across different regions, focusing more on emerging markets, balancing growth and value investment styles, and diversifying across different sectors to benefit from the spillover effects of technology capital spending and beneficiaries in the field of artificial intelligence .
(Article source: CLS)
