UPDATE: Goldman Sachs Asset Management has just announced critical insights for investors looking to capitalize on the stock market rally in 2026. According to Greg Calnon, cohead of public investing at Goldman Sachs, several key sectors are primed for growth as the mega-cap tech boom expands.
As the Federal Reserve continues to lower interest rates, Calnon predicts a robust performance for risk assets, indicating that the market is set for a significant shift. “I think there’s a lot of opportunities here,” Calnon stated during a recent CNBC interview, highlighting three areas that investors should focus on immediately.
First, small-cap companies are positioned at the forefront of the artificial intelligence (AI) movement. With the Russell 2000 index climbing 11.3% year-to-date, these firms are poised to innovate in niche markets, free from the competitive pressures faced by larger corporations.
In addition, the healthcare sector is experiencing a surge, benefiting from heightened interest in AI technologies. The iShares US Healthcare ETF has seen a remarkable increase of 14.5% this year, with Calnon asserting that healthcare is emerging as a leading sector for investment opportunities.
Furthermore, international stocks are outperforming their US counterparts, with the Vanguard Total International Stock Index Fund ETF soaring 26.8% year-to-date. Goldman Sachs anticipates that international markets will significantly outpace US equities over the next decade, projecting an annual return of 10% in emerging markets compared to the 6.5%% expected from the S&P 500.
Calnon emphasized, “It doesn’t need to be at the expense of the US. Other markets can participate as well.” This perspective signals a potential paradigm shift in investment strategies, urging investors to broaden their horizons beyond the US market.
As we approach 2026, all eyes are now on these sectors poised for growth. Investors should closely monitor small-cap stocks, healthcare innovations, and international equities to capitalize on the evolving landscape of the stock market.
Stay tuned for more updates as these investment trends develop further. Investors are encouraged to reassess their portfolios and consider these hot sectors as we move into a new year filled with potential.
