Goldman Sachs Forecasts 12% Earnings Growth for 2026 and Discusses Family Office Investment Strategies

Goldman Sachs 2026 Economic Outlook

• 🎯 Goldman Sachs forecasts 12% earnings growth for 2026, with more aggressive GDP estimates than consensus at 2.5%.
• 📈 Expectations for two Federal Reserve cuts in the upcoming year are seen as accommodative for equities.

Family Office Investment Approach

• 💡 Family offices tend to have a long-term investment horizon, often investing for multiple generations.
• ⏳ These clients demonstrate patience and have historically run into the market during dislocations, such as the events in April.
• 📊 Since 1945, equity markets have been positive in 79% of years, a trend recognized by family offices in their investment strategy.

Allocation to Private Markets

• 🏦 Family offices typically hold a higher allocation to private markets compared to the average client, with 42% in alternatives according to a summer report.
• 💰 This contrasts with an aggressive portfolio for an average private client, which is closer to 25% in alternatives.
• 🧩 The higher allocation to privates for family offices is attributed to larger pools of capital and a reduced need for immediate liquidity.