Investment strategies for 2026 are shifting as Goldman Sachs Asset Management highlights emerging opportunities beyond the current focus on artificial intelligence. According to Greg Calnon, cohead of public investing at Goldman Sachs, several sectors are poised for significant growth as the stock market rally expands. He shared these insights during an interview with CNBC this week, emphasizing the potential for risk assets as economic conditions improve.
Calnon pointed to the ongoing support from the Federal Reserve, which is expected to continue reducing interest rates. This monetary policy is likely to create favorable conditions for various sectors, including those that have not yet been the center of attention. He identified three main areas that could present promising investment opportunities in the upcoming year.
Small-Cap Companies Leading Innovation
Small-cap companies are emerging at the forefront of the artificial intelligence revolution, despite the majority of media coverage focusing on larger corporations. Calnon noted that many smaller firms are strategically positioned to capture niche markets rather than competing directly with major players in the AI space.
He highlighted the attractiveness of valuations in this segment relative to larger-cap stocks. As evidence, the Russell 2000 index has gained 11.3% year-to-date, indicating strong performance among small-cap companies. Calnon expressed confidence in the potential of these firms to spur innovation, stating, “I think there’s a lot of opportunities here.”
Healthcare Sector Benefits from AI Hype
The healthcare sector is another area that appears to be benefiting from the growing interest in artificial intelligence. Calnon pointed out that the iShares US Healthcare ETF has surged by 14.5% year-to-date, suggesting that the market rally is beginning to expand into this domain. He noted that specific investment opportunities within the healthcare sector are emerging, particularly those that leverage AI technologies.
Calnon referred to healthcare as “the tip of that spear,” indicating its leading role in the broader market rally. As AI technologies continue to innovate and streamline healthcare processes, firms in this sector may present lucrative investment prospects.
International Stocks Outperforming the US Market
Calnon also observed that international stocks have outperformed their US counterparts in 2023. The Vanguard Total International Stock Index Fund ETF has risen by 26.8% year-to-date, showcasing the potential of global markets. In a previous note to clients, Goldman Sachs projected that international stocks would significantly outperform the US market over the next decade.
The bank anticipates that the S&P 500 will return just 6.5% annually over the next ten years, while emerging markets and many Asian stocks could achieve annualized gains of 10%. Calnon remarked, “It doesn’t need to be at the expense of the US. Other markets can participate,” suggesting a more balanced view of global investment opportunities.
As the investment landscape evolves, Goldman Sachs encourages investors to consider these diverse sectors as potential avenues for growth in 2026. With the right strategies, there are opportunities to capitalize on the broader market rally and emerging trends.
