Goldman Sachs Sees 11% Global Equity Returns in 12 Months Q1

Goldman Sachs forecasts 11% global equity returns over the next 12 months, driven by strong earnings and growth, while urging diversification amid high valuations and intense AI focus.

  • Goldman Sachs projects global equities will return 11% over the next 12 months, including dividends in U.S. dollars.
  • Forecast cites strong corporate earnings and global economic expansion as primary drivers.
  • Diversification across regions, sectors, and investment factors is expected to remain important in 2026.
  • The market’s focus on Artificial Intelligence remains intense, though analysts say this does not necessarily indicate a bubble.
  • Goldman Sachs shared the outlook alongside commentary that high valuations make a repeat of 2025’s dramatic rally unlikely.

Goldman Sachs released a new outlook projecting that global equities could deliver 11% returns over the next 12 months, citing strong earnings and global economic growth as the main supports, according to the report. The firm shared the outlook publicly on January 12, 2026 via social media and linked materials.

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The report notes that markets saw strong gains in 2025 and that continued earnings growth and broader economic expansion could help equities rise further in 2026. “After strong gains last year, global equities are likely to continue climbing in 2026, as Goldman Sachs Research forecasts 11% returns over the next 12 months (including dividends, in US dollars).”

Analysts highlighted diversification as a continuing theme, saying investors who diversified across regions were rewarded in 2025 and that this approach should remain valuable. “Diversification was a core theme for Goldman Sachs Research last year. Investors who diversified across regions in 2025 were rewarded for the first time in many years, and our analysts expect diversification to continue as a theme in 2026, extending across investment factors such as growth and value and across sectors. (Investment factors are asset traits like size, value, or momentum that tend to affect risk and returns.)”

The report also addressed the strong market interest in artificial intelligence, noting intense focus but cautioning against assuming a bubble. “Overall, the market’s focus on AI ‘remains intense,’ our analysts write. That does not mean, however, that there is an AI bubble. ‘The tech sector’s dominance of markets has not been triggered by the emergence of AI,’ Oppenheimer writes. ‘It began after the financial crisis and has been supported by superior profit growth.'”

The firm added that high valuations make a repeat of 2025’s rapid rally unlikely, a point reiterated in its social media message. Goldman Sachs wrote that while the global bull market may continue, markets are unlikely to match the dramatic gains seen in 2025.

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