Goldman Sachs sees favorable macro for risk assets in 2026

Goldman Sachs macro outlook: why conditions favor risk assets now

goldman sachs (NYSE: GS) CEO David Solomon said macroeconomic conditions are “very favorable for risk assets” during the UBS Financial Services Conference 2026, as reported by Investing.com. The remark centers on an improving backdrop for dealmaking and capital markets despite lingering policy and geopolitical uncertainties.

Client positioning appears to reflect that assessment. Goldman’s cross-asset risk appetite gauge reached the 96th percentile in early 2026, indicating broad confidence in global growth, according to Bloomberg.

Why this matters for markets, CEOs, and capital formation

When risk appetite is high and policy uncertainty moderates, equity risk premia can compress, credit spreads can stabilize, and issuance windows tend to reopen. That combination typically supports primary issuance, underwriting capacity, and secondary-market liquidity.

Emerging markets could feature more prominently in allocations if domestic fundamentals align. Goldman upgraded its 2026 India GDP growth view and cut its current account deficit estimate following a trade development with the U.S., as reported by Malaysia Sun, reinforcing the case for selective EM exposure.

Deal activity is already showing signs of normalization. A recent earnings discussion pointed to CEOs re-engaging on multi-year decisions, with a “meaningful improvement” in the M&A cycle expected through late 2025 into 2026, as reported by American Banker.

“Macroeconomic conditions are very favorable for risk assets,” said David Solomon, CEO, Goldman Sachs, at a recent industry event. In practice, that stance aligns with wider bid-ask convergence, more resilient financing markets, and periodic reopening of IPO and follow-on windows.

Valuation discipline still matters. Elevated multiples in parts of equity markets may limit near-term upside, even if credit markets remain receptive and hedging costs ease. Execution quality and earnings durability will remain central to pricing power.

At the time of this writing, Bitcoin trades around $69,819 with very high 10.62% volatility and an RSI of 35.46 (14-day), based on available market metrics. These conditions underline how risk tolerance can fluctuate across public and digital assets.

Risks, scenarios, and what to watch next

Key risks: valuations, inflation path, Fed policy, geopolitics

Lofty valuations pose a vulnerability. HSBC’s Saul Martinez downgraded major U.S. investment banks on valuation concerns, highlighting downside if expectations overshoot fundamentals, as reported by MarketWatch. Inflation’s trajectory and the federal reserve’s policy path remain pivotal; fewer or slower cuts could tighten financial conditions. Geopolitical shocks or trade frictions could also reprice risk quickly.

What to watch: client risk appetite, M&A pipeline, India growth

Monitor risk appetite indicators for signs of normalization versus overshoot. Track announced deals converting to signed and financed transactions as a test of depth. Watch India’s growth follow-through and capital-formation trends.

FAQ about Goldman Sachs macro outlook

How could Solomon’s view translate into M&A and IPO activity over 2025–2026?

If financing stays accessible and earnings visibility holds, pipelines could convert faster, with more strategic M&A, minority stakes, carve-outs, and selective IPOs where profitability narratives are credible.

Which asset classes are most likely to benefit if risk appetite remains elevated (equities, credit, EM, private markets)?

Historically, U.S. equities, high-quality credit, selective emerging markets, and core private strategies benefit first, provided policy remains supportive and valuation discipline is maintained.