Goldman Sachs predicts continued stock market growth

Financial giant Goldman Sachs predicts further stock market growth amid a favorable global economic environment.

In an interview on Goldman Sachs’ YouTube channel, Anshul Sehgal, head of fixed income, currencies and commodities at the bank, said the outlook for markets looks bright thanks to tailwinds from the US, China and Germany.

In 2026, we see only good news for the global economy. Germany is expanding its budget through defense, we have a big and beautiful bill [by Trump] that could, especially in combination with AI and robotics, trigger a domestic credit boom in addition to the fiscal expansion we have seen over the last four years.

 

… China will continue to hold its ground in AI and robotics, and is already expanding both credit-wise and fiscally. So the combination of these factors globally essentially means higher asset prices in the medium term.

Segal believes that in the near term, tariffs will be a one-time blow to markets, as they will negatively impact either corporations or consumers.

If corporations [are hit], it will impact stocks, and if consumers [are hit], it will impact consumption in the short term.

 

However, it is a one-time tax, so once it is accounted for and kicks in at the beginning of next year… you will get depreciation bonuses or Social Security tax credits.

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