Global Stocks Are Projected to Return 11% in the Next 12 Months
Goldman Sachs••business
Key Points:
- Goldman Sachs Research predicts the global bull market will continue in 2026, supported by earnings growth and ongoing economic expansion across all regions, though gains are expected to be more modest than in 2025.
- Equity returns in 2026 are likely to be driven primarily by fundamental profit growth rather than rising valuations, with a forecasted 9% increase in equity prices and an 11% total return including dividends.
- Diversification remains a key investment strategy, with benefits seen across geographic regions, investment factors, and sectors; emerging markets and a mix of growth and value stocks are expected to offer better risk-adjusted returns.
- The market is currently in an optimism phase of the cycle, with some upside risks to forecasts due to rising valuations
