Goldman Sachs Report: Cyclical Rotation Slows, Maintains Overweight on Stocks

Goldman Sachs released its Global Opportunity Asset Locator report on September 2, maintaining an overweight stance on stocks and underweight on credit for the next 12 months. While earnings growth supports equity performance, the firm expects the pace of returns to moderate as earnings revisions peak. Goldman remains overweight on Asia and the U.S. while underweight on Europe. The report highlights that bonds are losing their effectiveness as a hedge, and suggests a barbell strategy—combining AI-related stocks with high-dividend, low-volatility defensive s