Goldman Sachs Predicts Stock Market Surge Amid Three Major Tailwinds Taking Hold

Financial services giant Goldman Sachs is predicting more stock market rallies amid a rosy global economic backdrop.

In a new interview on the Goldman Sachs YouTube channel, Anshul Sehgal, the bank’s co-head of fixed income, currency and commodities, says that the future looks bright for markets as tailwinds from the US, China and Germany.

“In 2026, we are seeing nothing but good news for the global economy. You’ve got Germany fiscally expanding because of defense, you’ve got [Trump’s] big beautiful bill, which has potential, especially in conjunction with AI (artificial intelligence) and robotics, to unleash a credit boom domestically in addition to the fiscal expansion we’ve witnessed over the last four years.

Similarly, [we expect] China to continue to hold on to its perch in AI and robotics [and is] already expanding in both credit and fiscal terms. So the combination of those things globally essentially means that you’re going to get asset price appreciation in the intermediate term.”

Sehgal goes on to say that in the near term, tariffs will likely create a one-time setback for the markets as either corporations or consumers will have to take the hit.

“In the very near-term, because tariffs are on corporations, if they absorb the losses – the number we’re talking about is $250 billion to $300 billion annualized – based on where things are falling, that’s about 1% of the GDP, it’s a non-trivial amount.

That, if it’s absorbed by the corporates, would have an impact on stocks, and if it’s absorbed by the consumer, it would impact consumption in the near term. It is a one-time tax, though, so once it’s factored and starting early next year, once you’ve got the bonus depreciation that’s in the big beautiful bill, you’ve got the social security tax benefits and the lower taxes on tips.

The combination of those things are very powerful for the US economy in our view.”

 

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