Goldman Upgrades Global Stocks, Long-Term Bonds

Goldman Sachs on Oct. 12, 2026 upgraded global equities to overweight from neutral for the next three months and favors government bonds over a 12-month horizon. Strategist Christian Mueller-Glissmann advised clients to go overweight stocks over three months and buy bonds over one year, saying "earnings growth remains supportive for equities and the recent valuation de-rating has improved asymmetry into the Q3 earnings season." He added that "Global equities in aggregate have been range-bound despite continued strong underlying earnings growth – as a result they de-rated materially alongside rising bond yields." FactSet data points to nearly 30% third-quarter earnings growth year-over-year as the season kicks into full gear the week of Oct. 12, with UnitedHealth and the six largest U.S. banks set to report. U.S. 10-year and 30-year yields hit their highest level since 2002 last week after rising more than 60 and 44 basis points since Aug. 25. The bank said "With our macro baseline of inflation normalisation, peaking energy prices and dovish views on central banks, allocations to bonds are becoming more attractive for investors with longer investment horizons." Outlets agree on the upgrade. Goldman's overweight equities call contrasts with BofA Securities, which maintained a sell signal on equities; the two firms disagree on the market call.