Key Themes
Report: https://am.gs.com/cms-assets/gsam-app/documents/insights/en/2025/Investment-Outlook-2026.pdf?view=true
- Stay Active and Disciplined in Portfolio Management
Actively managing portfolios — rather than passive benchmarks — is key to navigating the complex backdrop of central bank shifts, trade dynamics, and idiosyncratic credit events.
- Identify Catalysts That Drive Returns
Focus on events or secular trends that can accelerate growth across asset classes, such as rate cycles, AI capex, M&A activity, and fiscal policies.
- Monitor Central Bank Policy Divergence
With rate cuts expected in some regions and pauses or hikes in others, this divergence can create opportunities in interest rates, FX, and credit markets.
- Capitalize on Easing Cycles Where Appropriate
Potential rate cuts — especially in the U.S. and other major economies — may benefit fixed income (especially front-end Treasuries) and rate-sensitive equities.
- Broaden Equity Opportunities Beyond Mega-Caps
While large tech names remain important, broader equity markets — including small and mid-caps and non-tech sectors — offer catalysts for diversified equity return sources.
- AI Capex & Innovation Are Structural Growth Drivers
Large capital expenditures tied to AI and data infrastructure continue to reshape markets, creating opportunities in both established tech and emerging innovators.
- Deal-Making & M&A Momentum Can Unlock Value
Rebounding mergers and acquisitions activity is expected to spur private equity, private credit, and small cap demand — potentially driving returns in these segments.
- Incorporate Alternatives & Private Markets
Private credit, real estate, infrastructure, and other alternatives are highlighted as portfolio complements that can uncover returns uncorrelated with public markets.
- Integrate Expanded Portfolio Construction Tools
Utilize a mix of active ETFs, enhanced passive allocations, tail-risk hedges, and alternative strategies to recalibrate risk/return profiles.
- Invest in Themes Beyond Traditional Sectors
Themes like the energy transition, supply chain resilience, data/digital infrastructure, and defense/industrial growth are emerging investment areas as the global economy trends toward new megatrends.
