‘Definitely Long Stocks’: Goldman Sachs Executive Outlines Trading Strategy on Equities, Currencies and Treasuries

Goldman Sachs executive Anshul Sehgal is optimistic about the global economic situation and the equities market.

Sehgal, Goldman’s global co-head of fixed income, currency and commodities, says he’s still long on stocks.

“I think stocks are still very undervalued. You look at the earnings that came out in the last 24 hours, they are blockbuster good. You’re looking at two things that are playing out right now. Obviously, the AI CapEx boom, that’s contributing to GDP today. And conceivably because I’m a believer in the technology, I suspect over the next five to ten years it’s the AI deployment that will add to GDP.

So definitely long stocks. Long the dollar. Long carry because rates aren’t going anywhere. So long mortgage basis. Long US treasuries and asset swap. Short options on rates. Combination of carry strategies.”

Sehgal believes President Donald Trump’s One Big Beautiful Bill could work in conjunction with artificial intelligence and robotics to unleash a domestic credit boom.

“If you’re looking at a credit boom, especially a productive credit boom because that credit is being created and deployed into emergent technologies that have the potential to change the world, then essentially what ends up happening — and that’s how we’re viewing it — is that all of this accrues a lot more to US stocks than it does to other forms of investment. And when you look at it top down from that perspective, stocks continue to look very cheap to us.”

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