Goldman Calls for 13% Global Equity Gain in 2026, Eyes Diversified Gains

Goldman Sachs 2026 Global Equities Outlook

Goldman Sachs Group, Inc. (GS) has released its latest outlook for global equities in 2026, forecasting continued growth but with more moderate returns compared to the previous year. The investment bank is optimistic about the broader equity market, citing ongoing economic expansion and steady earnings growth as key drivers according to the latest report. Analysts at Goldman emphasize that while valuations are elevated, the market is in a late-cycle "Optimism" phase, suggesting further gains are likely, albeit at a slower pace as research shows.

The firm anticipates a 12-month price return of approximately 13% for global equities in 2026, translating to around 15% including dividends. This represents a tempered forecast compared to the strong gains of 2025, reflecting current valuations and the broadening nature of the bull market. Goldman also expects a continuation of modest U.S. Federal Reserve easing, which it sees as supportive of market stability and growth according to market analysis.

Goldman's outlook highlights a shift in investor focus from heavy concentration in U.S. and technology stocks toward a more diversified approach. The firm notes that while growth stocks have continued to outperform in the U.S., value stocks have gained traction in Europe, and non-technology sectors have also contributed to market gains. This broadening of leadership underscores the importance of diversification for investors looking to navigate 2026's market dynamics.

Why the Standoff Happened

Goldman Sachs' forecast for 2026 is based on the belief that the global economy will continue to expand, albeit at a more measured pace. While the firm acknowledges that high valuations are a factor, it argues that earnings growth will continue to support equity prices according to market data. The firm also points to the shift from a concentrated market dominated by U.S. tech stocks toward a more balanced sector and geographic mix. This shift is partly due to investors seeking better risk-adjusted returns, which has led to a broader range of sectors seeing increased activity.

The firm's cautious stance on returns is also shaped by its recognition of the late-cycle phase of the market. As such, investors should expect slower growth in valuations and a stronger reliance on earnings to drive gains. The firm's report highlights the importance of staying invested while rebalancing portfolios to capture this new phase of market optimism according to analysts.

How Markets Reacted

Goldman Sachs' 2026 outlook has been well-received by market analysts, with many noting that the firm's emphasis on diversification aligns with the broader trend observed in 2025. The firm's call for a more balanced investment approach has been seen as a response to the overconcentration in certain sectors, particularly in U.S. equities. The report also highlights the importance of emerging markets and value strategies in the coming year as research indicates.

In the broader equity market, investors have been reacting to Goldman's forecast by reassessing their portfolios. The firm's recommendation to increase exposure to emerging markets and sector diversification has led to increased trading activity in these areas according to market analysis. While the market remains optimistic, the emphasis on risk management and diversification is expected to shape investor behavior in the first half of 2026.

What This Means for Investors

Goldman Sachs' 2026 forecast suggests that investors should remain active but adopt a more strategic approach to portfolio management. The firm recommends increasing exposure to emerging markets, which it views as offering attractive opportunities amid a broadening bull market. Additionally, the report advises investors to balance growth and value strategies to optimize risk-adjusted returns according to market data.

Sector diversification is also highlighted as a key consideration. While technology remains a strong performer, the firm encourages investors to look beyond this sector to capture gains in other areas of the market. This approach aligns with the broader trend of investors seeking to reduce concentration risks and enhance portfolio resilience according to analysts.

Goldman's outlook also underscores the importance of monitoring macroeconomic developments and adjusting portfolios accordingly. With valuations elevated across all major regions, disciplined positioning and active rebalancing are seen as essential for navigating 2026's market environment.