From Goldman Sachs website.
Goldman Sachs forecasts a significant economic acceleration in 2026, with expectations for a boom in earnings, particularly in cyclical sectors, and a notable rise in gold prices.
Economic Growth and Earnings
Goldman Sachs anticipates that the U.S. economy will grow at a rate of 2-2.5% in 2026, driven by factors such as reduced tariffs, tax cuts, and easier financial conditions. This growth is expected to boost earnings per share (EPS) in cyclical sectors like Industrials, Materials, and Consumer Discretionary. For instance, EPS growth for real estate companies is projected to rise from 5% to 15%, while consumer discretionary sectors are expected to see an increase from 3% to 7%.
Business Insider
Federal Reserve Rate Cuts
The outlook for monetary policy in 2026 suggests that the Federal Reserve may implement rate cuts, with Goldman Sachs predicting a reduction in the federal funds rate to a terminal level of 3-3.25%. This is expected to occur as economic growth accelerates and inflation stabilizes.
Goldman Sachs
Gold Price Forecast
Goldman Sachs has raised its gold price forecast for 2026 to $4,900 per ounce, citing strong demand from central banks and retail investors. Analysts believe that a shift towards diversification into gold, particularly among emerging market central banks, will support this price increase. Additionally, a survey indicated that 36% of institutional investors expect gold prices to exceed $5,000 by the end of 2026.
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Investment Strategy
Goldman Sachs emphasizes the importance of an active investment approach in 2026, focusing on identifying catalysts and opportunities across public and private markets. They suggest that investors should recalibrate their portfolios to unlock returns amid evolving market conditions.
gs.com
In summary, Goldman Sachs' predictions for 2026 highlight a robust economic outlook, potential earnings growth in cyclical sectors, a favorable environment for gold prices, and the necessity for active investment strategies to navigate the complexities of the market.
