Goldman Sachs: I have a constructive view on the stock market next year and expect corporate profits to continue to grow

The Zhitong Finance App learned that Goldman Sachs released a research report stating that it maintains a constructive view on the 2026 stock market and expects corporate profits to continue to grow, but as the bull market expands, the index return is expected to be lower than 2025. At the same time, the bank expects the economy to continue to expand in all regions, and the US Federal Reserve will further cut interest rates slightly. Therefore, even if the stock market is overvalued, as long as the economy does not fall into recession, the stock market rarely falls significantly or experiences a bear market.

Weighted by regional market capitalization and calculated in US dollars, the bank expects a return on stock market prices of 13% in 2026, with dividends of 15%, mainly driven by profit. However, in the optimistic phase that usually occurs in the latter part of the cycle, valuations will rise, so the bank's forecast still has an upward risk.

The bank advises investors to keep investing and diversify their assets across different regions, paying particular attention to emerging markets. In addition, investors should also evenly distribute growth and value targets, as well as different industries, and pay attention to shares with high alpha values.