Our articles provide an in-depth exploration of markets, sustainability, technology disruption and economics, with experts inside and outside of Goldman Sachs.
Why has youth unemployment risen so much in China?
Even as China’s economy has surged following the dismantling of zero-Covid restrictions, youth unemployment has stayed stubbornly high. Part of the reason is probably because of a mismatch between the jobs young people are studying for and the roles that are available, according to Goldman Sachs Research.
US offices are under pressure, but real estate may still offer a hedge for investors
Commercial real estate – and office buildings in particular – are going through a challenging transition: Climbing interest rates are rippling through the sector at the same time occupants are seeking out newer, more sustainable architecture in new parts of the country.
Bill Gates on the AI revolution in education and new era of the “personal agent”
Bill Gates doesn’t think any one company will dominate AI, but he does see at least one big opportunity that’s ripe for the taking.
As debt limit talks intensify, the US may have to quickly raise $1 trillion
As politicians in Washington negotiate over a deal on the debt limit, Treasury officials may soon have to clear another hurdle: issuing around $1 trillion of debt in about six months, according to estimates from the Short-Term Interest Rates Trading desk at Goldman Sachs.
As interest rates climb, the global housing market is surprisingly stable
The global housing market seems to be stabilizing faster than expected despite months of rising mortgage rates, according to Goldman Sachs Research.
OpenAI co-founder says international cooperation is needed as we move toward 'superintelligence’
For OpenAI co-founder and president Greg Brockman it’s not only time to start thinking about artificial intelligence and products like his own company’s ChatGPT text-based AI, but also the move toward even more potent systems and technology.
The gender credit gap is holding back growth worldwide
The case for encouraging, empowering, and enabling women entrepreneurs is straightforward: around the world, female entrepreneurs drive both economic growth and help to reduce poverty. According to the World Bank, there are now about 8 million to 10 million formal small and medium enterprises (SMEs) with at least one female owner in developing countries.
Are Americans moving away from equities?
A wave of dollars has been flowing into money market funds. Is this a sign that Americans are falling out of love with stocks? John Marshall of Goldman Sachs Research separates the signal from the noise.
How Job Openings in the US Cooled—Without a Spike in Unemployment
There are growing signs that overheated job markets in the U.S. and other developed economies are cooling, according to Goldman Sachs Research. The surprise is that labor markets are rebalancing, at least so far, without a spike in unemployment or setting off a recession.
Why Greece is One Step Away from an Investment-Grade Rating
Greece is on the cusp of regaining investment grade status more than 12 years after losing that important credit rating, marking a sharp reversal for an economy that was roiled during the euro area’s sovereign debt crisis.
More Than 75% of Surveyed Small Businesses are Worried About Access to Credit
More than three-quarters of small business owners say they are concerned about their ability to access capital as banking stress prompts smaller institutions to tighten credit, according to our 10,000 Small Businesses Voices initiative, which conducts regular surveys of small enterprises in the U.S.
The rise of geopolitical swing states
As the U.S. and China coexist, compete, and confront each other to determine who will set the geopolitical rules, they will either court or thwart an emerging group of countries to gain an edge. This new class of influential nations are the geopolitical swing states of the 21st century.
Private credit may outperform public bonds as defaults rise
The opportunities for private credit may be expanding even as financial markets grow more turbulent and uncertain, according to Goldman Sachs Asset Management (GSAM).
Why corporate separations are gaining popularity in board room playbooks
Basic math tells us that the whole is equal to the sum of its parts. But companies leading a wave of corporate separations clearly feel their parts add up to more than that – and a new paper authored by EY and our M&A structuring team at Goldman Sachs suggests that they’re on to something.
CRISPR’s One-Shot Moonshot to Change Medicine
Imagine instead of taking pills or undergoing regular treatments for a disease that you could simply have a one-time procedure and be cured of it forever.
Do Activist Investors Boost Shareholder Returns?
Shareholder activism is on the rise, driven in part by economic uncertainty and a changing regulatory landscape. U.S. companies targeted by activist investors typically outperform their sectors initially — but the results tend to be mixed, according to Goldman Sachs Research.
Low Stock Market Volatility Masks ‘Pain Under the Surface’
Even as traders grapple with a slowing economy, banking turmoil and geopolitical worries, stock market volatility in the U.S. is hovering around its lowest level in more than 20 months. With so much uncertainty and turbulence, why have price swings in the equity market been so subdued?
How Artificial Intelligence is Accelerating Innovation in Healthcare
Healthcare — one of the largest sectors of the U.S. economy — is among the many industries with significant opportunities for the use of artificial intelligence (AI) and machine learning (ML), says Salveen Richter, lead analyst for the U.S. biotechnology sector at Goldman Sachs Research.
Large Offices in Major US Cities are the Most at Risk in Commercial Real Estate
Big office buildings in large U.S. cities are the most at risk from turmoil in commercial real estate, according to Goldman Sachs Research. There are signs that smaller offices in suburbs, as well as newer buildings in central businesses districts, could be more insulated from the stress.
The Six Themes Driving Capital Toward Sustainable Solutions
Goldman Sachs' 2022 Sustainability Report focuses on the how – demonstrating how Goldman Sachs is working with clients to help them achieve their sustainability objectives. The role we take in aiming to meet the increasing demand for sustainable finance advice, tools, and solutions, helps us inform the market and develop new solutions to better support our clients. Specifically, the report captures notable progress around six key themes.
The Creator Economy Could Approach Half-a-Trillion Dollars by 2027
The so-called “creator economy” has mushroomed and is expected to grow even more in the coming years, according to Goldman Sachs Research.
AI Could 'Revolutionize' Human Knowledge, Goldman's Marco Argenti Says
The impact of advances in generative artificial intelligence on society could be comparable to the printing press, according to our Chief Information Officer Marco Argenti.
The US is Poised for an Energy Revolution
The U.S. Inflation Reduction Act (IRA) will spur about $3 trillion investment in renewable energy technology that could double the amount of energy produced by the shale revolution 15 years ago, according to Goldman Sachs Research.
Smaller US Businesses and Towns are Likely to Be Hit Hardest by Bank Turmoil
Stress in U.S. banking, which has been concentrated among small and midsize lenders, is likely to hit smaller American businesses the hardest, according to Goldman Sachs Research. The financial jitters that started with Silicon Valley Bank’s collapse may also have a bigger impact outside of large cities.
OPEC’s Unusually High Pricing Power Puts a Floor Under Oil Prices
OPEC’s surprise announcement of a cut in oil production this month shows the group is taking advantage of its ability to raise oil prices without significantly denting demand, according to our economists.
Generative AI Could Raise Global GDP by 7%
Breakthroughs in generative artificial intelligence have the potential to bring about sweeping changes to the global economy, according to Goldman Sachs Research. As tools using advances in natural language processing work their way into businesses and society, they could drive a 7% (or almost $7 trillion) increase in global GDP and lift productivity growth by 1.5 percentage points over a 10-year period.
Stability AI CEO Says AI Will Prove More Disruptive Than the Pandemic
"We figured out how to make humans scale," Emad Mostaque, founder and CEO of Stability AI, told an audience at Goldman Sachs 2023 Disruptive Technology Symposium in London.
Can Europe Beat China and the US in Quantum Computing?
As funding pours into quantum computing, investors are focused on the potential for this technology to address scientific, business and security problems beyond the reach of today’s conventional computers. There are signs that dramatic impacts could come in the not-too-distant future, according to industry executives who spoke at the Goldman Sachs 2023 Disruptive Technology Symposium.
US Households Have Found There is an Alternative to Stocks
The flow of money in the U.S. into bond and money-market funds accelerated over the last two weeks amid jitters about the banking sector. The surge added to the shift in flows this year from stocks to lower-risk assets that offer more yield, according to Goldman Sachs Research.
Are Bonds a Good Investment?
When shock rippled through the U.S. banking system this month, bonds again proved themselves to investors, according to Ashish Shah, Chief Investment Officer of Public Investing at Goldman Sachs Asset Management.
China May Reach Energy Self-Sufficiency by 2060
Rapid expansion of solar and wind has China on pace to triple government goals by 2030, setting the country on a path to full energy independence in the coming decades.
As Bank Stress Grows, are Markets Signaling a US Recession?
The turbulence among smaller banks in the U.S. is set to slow the economy, raising the likelihood of a recession. But stock and bond markets were offering different signals about whether the U.S. is headed for a hard landing earlier this week, according to Brett Nelson, head of tactical asset allocation for the Asset & Wealth Management Investment Strategy Group (ISG) at Goldman Sachs.
China’s Biggest Opportunities in Online Gaming May Be Outside China
China’s online gaming market is the biggest in the world, but the most compelling opportunity for its native game developers and publishers might be capturing more users outside its borders, according to Goldman Sachs Research.
Why the Global Housing Market Has Further to Slide
Higher mortgage rates are taking their toll on housing markets around the world, and sales and prices will likely remain under pressure this year in most G10 economies, according to Goldman Sachs Research.
Why Banking Stress Will Likely Have a Manageable Impact on Growth in Europe
Recent stress on the global banking system has led to only a slight deterioration in the outlook for economic growth in the euro area and the U.K.
The Hydrogen Revolution Accelerates
Hydrogen has both flexibility and a high specific energy per unit mass – two attributes that make it uniquely capable at removing emissions from the harder-to-decarbonize parts of the global economy.
Stress Among Small Banks is Likely to Slow the US Economy
As stress ripples through smaller banks in the U.S., the tightening in lending standards among those institutions is expected to reduce economic growth this year, according to Goldman Sachs Research.
Oil Prices Could Hit $107 By Year's End—If OPEC Stands Firm
A new report from GS Research looks at oil prices and how OPEC may respond to emerging market conditions
Higher Rates Will Weaken the UK’s Economy via the Housing Market
After 10 consecutive interest rate hikes, the Bank of England is balancing the need to control inflation with the risk of increasing rates too far. The policy tightening is likely to weigh heavily on growth via the U.K. housing market, according to Goldman Sachs Research.
For Signs of Economic Growth in Asia, Look North
The reopening of China and an economic recovery in Korea could shift the center of gravity in Asian stock markets to the north, away from India and ASEAN countries, according to a Goldman Sachs Research report.
Why This Yield Curve May Not Signal a U.S. Recession
The US yield curve inversion widened last week to a level not seen since 1981. In a newly published report, Goldman Sachs Research’s economists question the predictive power of this longtime recession indicator and argue why this time might be different.
Why Corporate Layoffs May Not Signal a Weaker Demand for Jobs
A puzzling contrast has emerged in the US labor market in recent months: Announced job cuts keep mounting but official employment data from the government continue to point to resilient demand for workers. Collectively, corporations announced more than 100,000 layoffs in January alone. A new report from Goldman Sachs Research tackles the question of whether the spate of job cuts means the labor market has already entered a downturn.
Electric Vehicles are Forecast to Be Half of Global Car Sales by 2035
EV sales will soar to about 73 million units in 2040, up from around 2 million in 2020, according to forecasts by Goldman Sachs Research. The percentage of EVs in worldwide car sales, meanwhile, is expected to rise to 61% from 2% during that span. The share of EV sales is anticipated to be well over 80% in many developed countries.
Investors Expect Equity Capital Markets Activity to Double This Year
A wide range of investors think activity in equity capital markets will double in 2023 from the year before, when markets were beset by volatility, according to Goldman Sachs’ Annual Equity Capital Markets Investor Survey.
China’s Reopening is Poised to Boost Global Growth
China’s reopening from Covid-19 restrictions will not only accelerate the country’s economic recovery, but it will also boost global economic growth, according to Goldman Sachs Research.
A Deal on the Debt Limit is Likely—but Not Without a Lot of Uncertainty
The political standoff over raising the U.S. federal debt limit will likely be resolved—but it’s still likely to create uncertainty for financial markets if history is repeated.
France’s 2023 Outlook Hinges on Energy, Inflation, and Government Reforms
The French economy was able to keep growing for a large part of 2022 despite a number of challenges. A report from Goldman Sachs Research predicts the country will experience a period of weakness but narrowly avert a recession.
Could Japan Unwind a Key Part of its Ultra-Loose Monetary Policy?
A core pillar of Japan’s ultra-easy monetary policy – known as yield curve control (YCC) – has come under increasing market skepticism in recent months, raising the possibility that the country could eventually abolish it altogether, according to strategists within Goldman Sachs’ Global Banking & Markets.
Where the Inflation Reduction Act Tailwinds are Blowing
Passage late last year of the Inflation Reduction Act (IRA) will impact several sectors, including clean technology, hydrogen, and electric vehicles (EVs). But the effects of the U.S. legislation will extend well beyond those industries, according to a new Goldman Sachs Research report.
Why the US Can Avoid a Recession in 2023
The threat of a U.S. recession remains alive in 2023. The consensus estimate on the probability of a meaningful downturn in the American economy in the next 12 months is at 65%, according to Goldman Sachs Research. But our own economic analysis rates that probability much lower, at 35%. David Mericle, our chief U.S. economist, and Alec Phillips, our chief U.S. political economist, elaborate on that lower risk and answer some of the big questions facing the U.S. economy in 2023.
The U.S. and Europe Are Moving Toward Battery Self-Sufficiency
As the transition to a low-carbon future makes batteries critically important, countries are making significant headway in reducing China’s dominance over the supply chain, according to a new Goldman Sachs Research report.
The Resilient Business: UK Entrepreneurs on How to Lead During Periods of Uncertainty
Managing through uncertainty is a business imperative. In recent years, small business owners in the UK have faced the ripple effects of multiple crises, from the Covid-19 pandemic to the war in Ukraine. As the UK faces a potentially long and deep recession, small business owners must, again, plan to withstand a volatile economic climate while seeking, and hoping, to emerge stronger.
Is the Inflation Reduction Act a Game Changer for Reaching Net Zero?
The sweeping climate, healthcare and tax bill is estimated to provide more than $390 billion of energy and climate spending over a 10-year period, according to the US Congressional Budget Office, with about $270 billion of that coming in the form of incremental tax incentives for businesses and individuals to pursue and invest in cleaner and more efficient energy sources.
After a Challenging 2022, What’s Next for Emerging Market Bonds?
It’s been a challenging year for emerging markets, which faced tighter financial conditions and growth headwinds from the war in Ukraine and China’s property sector. Bond markets in lower-quality developing countries have been hit especially hard amid rising interest rates. We spoke with Kay Haigh, head of emerging market debt in Goldman Sachs Asset Management, and Nick Saunders, head of emerging market corporate debt, about challenges and opportunities posed by a new era for financial markets — one in which easy policy is no longer around to lift all assets.
China’s Reopening from Covid Likely Won’t Be Straightforward
China relaxed some of its Covid rules this week as the country edges closer to an exit from its zero-Covid policy. But don’t expect a speedy and smooth transition to a full reopening of China’s economy.
The Global Economy in 2075: Growth Slows as Asia Rises
The world’s fastest years of economic growth are likely already behind it — expansion is slowing as population growth weakens, according to Goldman Sachs Research. But emerging economies, and powerhouses in Asia in particular, are forecast to keep catching up to richer countries.
Holiday Shoppers Are Looking for Value This Year
The 2022 holiday season could be a leaner one, with price-conscious shoppers hunting for value and nearly half planning on spending less than last year, according to a survey by Goldman Sachs Research.
Is It Time to Switch from Stocks to Bonds?
As central banks ratchet up interest rates to contain inflation, high-grade bonds are starting to give stocks a run for their money, according to Goldman Sachs Research’s 2023 Outlook for Asset Allocation.
Spiking Tech Layoffs Don’t Signal Impending Recession
Do mass layoffs in Big Tech mean big trouble for the U.S. economy? Probably not, according to a new report from Goldman Sachs Research.
Europe’s Path to a Sustainable, Reliable, and Affordable Energy Future
Russia’s invasion of Ukraine has upended the European energy playbook. To better understand the current situation and future possibilities for the continent’s energy needs, we asked senior leaders throughout Goldman Sachs for their analysis.
The Bear Market in Global Stocks is Forecast to Get Deeper in 2023
The bear market in stock markets is forecast to intensify before giving way to more hopeful signals later in 2023, according to Goldman Sachs Research.
US Stocks are Forecast to Have Less Pain but No Gain in 2023
“Put simply, zero earnings growth will drive zero appreciation in the stock market,” David Kostin, chief U.S. equity strategist, wrote in the team’s 2023 Outlook.
Supply Chains and US Inflation: Short-Term Gains, Long-Term Pains?
Covid-related supply-chain disruptions and the inflation they brought about in the U.S. are starting to go back to normal, but some of the reaction to that disruption could cause inflationary pressures of their own, according to a report from Goldman Sachs Research.
Why the US is Expected to Escape Recession in 2023
The U.S. will probably stick a soft landing next year: the world’s largest economy is forecast to narrowly avoid a recession as inflation fades and unemployment nudges up slightly, according to Goldman Sachs Research.
The Future of Coding is Conversation
The way humans interact with computers is poised for a profound change and in the coming years computers will be the ones getting used to us. Developments in language understanding mean everyone from scientists to businesspeople can increasingly use AI tools without learning coding languages.
What Lula’s Election Means for Brazil’s Economy and Investors
In a Q&A, Alberto Ramos, head of the Latin America Economic Research team in Global Investment Research, examines Luiz Inácio Lula da Silva’s presidential-election victory in Brazil and its implications for that country’s economy, fiscal outlook, and investment environment.
Humanoid Robots: Sooner Than You Might Think
Robots are making their first tentative steps from the factory floor into our homes and workplaces. In a recent report, Goldman Sachs Research estimates a $6 billion market (or more) in people-sized-and-shaped robots is achievable in the next 10 to 15 years. Such a market would be able to fill 4% of the projected US manufacturing labor shortage by 2030 and 2% of global elderly care demand by 2035.
China's Reopening Could Drive Stocks Up 20%
A full reopening of the China could drive a 20% increase in Chinese stocks, potentially adding $2.6 trillion to the equity market, according to Goldman Sachs Research.
Software Is Taking Over the Auto Industry
Fully self-driving vehicles may still be years away but Goldman Sachs Research analysts believe auto industry profits could rise meaningfully this decade as software becomes increasingly important.
The UK is Expected to Slide into a More ‘Significant’ Recession
After weeks of financial turmoil, the U.K. is expected to slide into a deeper recession than previously forecast, according to Goldman Sachs Research.
Why the CHIPS Act Is Unlikely to Reduce US Reliance on Asia
While the recently passed CHIPS Act might serve as a valuable hedge against future semiconductor shortages in the US, it’s not likely to make a dent in supplanting Asia’s dominance in the sector, according to Goldman Sachs Research.
Rent Catch-Up Is Likely to Keep Inflation High Next Year
Higher rents were a big driver in September’s higher-than-expected consumer price index (CPI) reading. A new report from Goldman Sachs Research finds such inflation could be the source of persistent inflation “stickiness.”
How to Protect a Stock Portfolio During a Bear Market
At a time when stocks are sliding deeper into a bear market, it can be hard (and painful) to remember that equities have the best chance of getting investors an attractive return over the longer term. Portfolios have gotten riskier since the beginning of the year, as bonds and stocks have fallen together. But there are ways investors can insulate portfolios until the turbulence subsides, according to Goldman Sachs Research.
Why Home Prices are Poised to Fall
From New Zealand to the U.S., housing prices are likely to decline in many big countries, according to Goldman Sachs Research.
Companies Should Think ‘Circular’ to Cut Waste, Costs and Emissions
For centuries companies that produce goods have followed a trusted formula: take the planet’s resources, make products, sell them to a to customers that then, after a period of use, throw out the goods as waste. Repeat.
Why the British Pound Fell to a Record Low Against the US Dollar
The U.K. currency, already buffeted by an energy price shock, traded at a record low against the dollar after the government unveiled a spending plan that some fear could spark higher inflation.
The Invasion of Zombie Companies that Wasn’t
Investors and policy makers have long worried that ultra-low interest rates would give rise to a legion of zombie companies — firms that survive mainly because borrowing is cheap and plentiful. But there are reasons to think the number of zombies is smaller than some feared, according to Goldman Sachs Research.
Is the US Dollar Too Strong?
The U.S. dollar is on a roll. Even as the American economy shows signs of cooling, the greenback has soared against major currencies from Europe’s 19-member euro to the Chinese renminbi. An index of the dollar versus other major currencies is trading around a two-decade high.
Communacopia + Technology Conference 2022: The Evolution Will Be Streamed
We polled the companies and investors at Goldman Sachs’ Communacopia + Technology Conference 2022 to understand everything from their recession expectations to where they see innovation across their industries. Here’s what they had to say.
Europe’s Energy Crisis is at a Tipping Point
Russia’s shutdown of the Nord Stream 1 gas pipeline threatens to further squeeze the disposable income of Europeans. A typical family in the EU could face energy bills of €500 per month by early next year without the introduction of price caps, according to Goldman Sachs Research – up 200% from 2021.
How Deep Could the Next US Recession Be?
If the U.S. economy slips into a downturn in the next year, there’s at least one consolation: the contraction isn’t expected to be deep, according to Goldman Sachs Research.
Why Some Homebuyers in China Are Boycotting Their Mortgage Payments
As property developers run out of funding to finish properties, a growing number of buyers in China have stopped making mortgage payments on incomplete homes. The boycotts are a sign of the distress in China’s property market as the government seeks to rebalance the sector.
How Close Is the US to Recession?
Signs that the U.S. economy is slowing are increasing. A key question is whether it has decelerated enough to bring down inflation without tipping into recession.
How to Overhaul the Tried-and-Tested Investment Portfolio When Inflation Soars
The 60/40 portfolio — split between the S&P 500 Index of stocks (60%) and 10-year U.S. Treasury bonds (40%) — fell about 20% in the first half of 2022, the biggest decline on record for the start of a year, according to Goldman Sachs Research.
Value through Values: Sustainability is Growth Investing
Investors are increasingly asking if companies are tapping into growth areas such as the energy transition and the waste-reducing circular economy, says Bertie Whitehead, managing director and EMEA head of ESG in Investment Banking at Goldman Sachs. “We used to call these megatrends, but it’s simply growth investing. This is where capital is going.
How Europe Can Replace Russian Gas and Still Achieve Its Net-Zero Emissions Goals
The tensions between Russia and the rest of Europe over natural gas flows have underscored the unsustainability of the continent’s energy system. But with the right mix of infrastructure investment, Europe can emerge from the upheaval with a system that is cheaper, achieves the continent’s net-zero carbon emissions goals and is more secure.
What Happens If Russia Cuts Off Gas to Europe?
As tensions mount between Russia and western powers over the invasion of Ukraine, a critical question is how much natural gas will flow through Nord Stream 1, a vital pipeline between Germany and Russia.
Small Businesses Are Braving a Stormy Outlook; Policymakers Should Follow Their Lead
Small businesses are the first to be buffeted by new economic conditions, but even for the most agile and experienced operators, the current operating environment is a particularly rough sea. Many small businesses were slammed when the COVID-19 pandemic tore through the global economy, and from surging gas prices to staff retention, the waves just keep coming.
Can Private Markets Resist the Bear Market in Stocks?
As stock markets stumble, will the trillions of dollars that have flowed into private markets be a haven from the turmoil?
The Global Housing Market is Starting to Wobble as Central Banks Hike Rates
The pandemic-induced housing boom appears to be cooling off. From Toronto to Auckland, a slowdown in the housing market (the most interest-rate sensitive segment of the economy) is underway as interest rates in developed economies are set to climb rapidly, according to Goldman Sachs Research.
Wage Inflation in the US May Have Already Peaked
Jaws dropped when the latest report on consumer price inflation arrived, clocking its biggest year-over-year jump in the U.S. since 1981. That and other economic data points contributed to the Federal Reserve’s decision on June 15 to make its biggest rate hike since 1994. But there are signs that labor shortages — a key driver of overall inflation, may have peaked months ago, according to Goldman Sachs Research.
How the ECB Plans to Avoid Fragmentation and Contain Inflation
The euro area economy is starting to look more like the picture in the U.S. and the U.K. – wage growth is accelerating and inflation seems to be getting stickier. Those concerns are pushing the European Central Bank to act faster to tighten monetary policy.
The War in Ukraine Stokes Global Food Inflation
Russia’s invasion of Ukraine has heightened the uncertainty over food supply, a global market that was already feeling the effects of COVID-19 and the ongoing impact of climate change. With the help of Goldman Sachs Research, we took a closer look at the regions most affected by surging food prices and the increasing cost of agricultural commodities and products.
Could Immigration Solve the US Worker Shortage?
The biggest gap between job openings and available workers in postwar history is one of the key reasons that inflation is soaring in the U.S. A drop in immigration has helped push the gap wider, suggesting an increase in foreign-born workers could help contain the rise in wages and prices, according to Goldman Sachs Research.
Welcome to the ‘Postmodern’ Cycle of Higher Inflation and Lower Stock Returns
The economy based on physical stuff is getting its revenge. Not so long ago, investors were enamored with fast-growing companies that used software to send a ride or groceries to your door at the push of button, even if the firm’s profits were far off in the horizon. But these days, healthy margins and companies that make real, physical stuff are back in focus, according to Peter Oppenheimer, chief global equity strategist at Goldman Sachs.
Retail Investors Are Sticking with the US Stock Market—So Far
The S&P 500 Index this year has fallen by the most in decades, as investors reckon with everything from lockdowns in China to a Federal Reserve that aims to cool the most overheated job market in postwar U.S. history. But retail investors, who have become a key force in U.S. equities, have for the most part kept their cool.
The US Economy Is Poised to Slow as the Fed Taps the Brakes
The Federal Reserve is tapping the brakes on U.S. economic growth, which could help bring down inflation and temper the most overheated job market in postwar American history, according to Goldman Sachs Research.
Brazil Wrestles with Stagflation as the Fed Starts Tightening
Like many countries, Brazil faces a challenging mix of slowing economic growth and soaring inflation. But what makes Latin America’s largest economy different from other nations is that its central bank has lifted its benchmark rate 10-straight times to one of the highest policy rates in the world.
The $6 Trillion Plan: Unleashing New Waves of Green Investment
Recent instances of threatened energy supply have the potential to a galvanize investors, corporates and policymakers to prioritize green energy sources that are also secure, reliable and accessible. In order to achieve this, swift and significant capital investment will need to be deployed globally – to the tune of $6 trillion annually. We talked with Brian Singer, global head of GS SUSTAIN, to understand more about Green Capex, which industries will feel the effects, which technologies hold the most potential and where policy can help to drive investment.
Is Optimism Returning for China's Internet Companies?
China’s digital champions have been buffeted by uncertainty on three fronts: COVID-19 measures, regulatory tightening and the risk of delisting from US stock markets. We sat down with Ronald Keung, the head of Goldman Sachs Research’s Asia internet team to discuss the recovery of China’s internet sector following a period of weaker earnings. Looking beyond the near-term COVID impact, Keung says that the outlook remains promising for investors.
Asian Americans are Racking up Successes — Except for Getting the Top Executive Jobs
Asian Americans are a tremendous contributor to the U.S. economy, with an outsized presence in everything from sophisticated patents to Nobel Prizes. But as the U.S. marks Asian Heritage Month, Goldman Sachs Research finds that this group still faces barriers in rising to the highest echelons of corporate America.
After Long Decline, Oil and Gas Investing is Poised to Boom
Against the backdrop of war in Ukraine, 2022 is seeing renewed focus on energy security as Europe grapples with how to restructure its supply to reduce its reliance on Russia. The crisis has revealed the challenge ahead for the world as it faces geopolitical conflict, efforts to decarbonize and high global inflation. Today, the energy industry is at turning point, with an expected increase in investment across commodities, including oil and gas, according to Top Projects, Goldman Sachs Research’s annual analysis of the energy sector. We spoke with Michele Della Vigna, head of Goldman Sachs’ natural resources research in EMEA, to learn more.
Building for the future: Are developers going ‘green?’
Environmental, social and governance (ESG) considerations are increasingly driving corporate strategy in asset classes around the world. But when it comes to building real estate, is environmental impact – particularly carbon emissions – a critical concern for developers and investors? We sat down with Nora Creedon, an investor in private real estate within Goldman Sachs Asset Management, to discuss if buildings truly are going “green.”
The UK Performs Poorly When it Comes to Social Mobility. Here’s How it Can Improve
Compared with other countries, the most disadvantaged in the U.K. are less likely to climb the income ladder and the economically advantaged tend to stay at the top. Covid-19 has increased inequality further, and recent rises in inflation, especially energy costs, are intensifying the problem. In a recent report, Goldman Sachs Research has taken a closer look at the issue, investigating what needs to be done to improve mobility and opportunity for people in the U.K.
Europe’s Digital Startups are Closing the Gap with Tech Companies in the U.S.
Europe’s tech entrepreneurs have arrived. The ecosystem of digital companies has grown twice as fast as in the U.S. during the past seven years, and funding in Europe’s private companies eclipsed $100 billion for the first time in 2021.
The Invasion of Ukraine is Accelerating the Supercycle in Commodities
As the war between Russia and Ukraine escalates, global commodities markets are going through the most upheaval since the 1973 oil embargo on the U.S. But this time the energy crisis is most acute in Europe, which relies more heavily on Russian exports. And the shock isn’t confined to one commodity. Russia is the second largest commodity producer in the world (behind the U.S.), and the repercussions of its invasion seem to have changed global supply chains overnight. We sat down with Goldman Sachs’ Global Head of Commodity Research Jeff Currie for his view on global commodities and the impact on markets.
How Long Will the Semiconductor Shortages Last?
The shortage of semiconductor chips is straining global supply chains, causing a drag on the production of an array of products from smartphones to new cars. We spoke to Alexander Duval, a technology analyst in Global Investment Research at Goldman Sachs, after our virtual European Digital Economy Conference to discuss chip production and the impact of the Ukraine-Russia crisis on the sector. He highlighted how a number of European companies at the conference expect tightness in the supply and demand of semis to potentially persist in their particular product areas into early 2023, albeit with some gradual easing in certain types of chips in the second half of this year.
How Conflict in Ukraine, Soaring Inflation and Rapid
At the start of the year, Goldman Sachs Asset Management released Investment Ideas 2022, taking a deep dive into the key themes likely to influence investor behavior. But disruptive forces — such as the conflict between Russia and Ukraine — are constantly evolving, presenting new challenges to the global economy. We sat down with Goldman Sachs Asset Management’s Candice Tse, global head of strategic advisory solutions, and Maria Vassalou, deputy chief investment officer of multi-asset solutions, to look at the impact disruption is having and how investors can navigate it.
Outlook for China’s Property Sector
Are there signs of healing in China’s property sector? When the indebted property giant China Evergrande Group started defaulting on its payments last fall, fear spread that a potential bankruptcy would trigger a broader crisis in China’s debt markets — and global markets more broadly. Several months later, defaults on Chinese property bonds continue to remain elevated. We spoke with Kenneth Ho from Goldman Sachs Research and Salman Niaz of Goldman Sachs Asset Management for their views on Chinese property credit and the Asia high-yield sector more broadly to understand what has changed.
How to Equalize Opportunities for Black Women Business Owners
In our recent Black Womenomics: Equalizing Entrepreneurship report, new research from Goldman Sachs delves into the entrepreneurial and economic inequalities facing Black women in the U.S. From access to capital and financial education, to the effects of discrimination and bias, the research paints a daunting picture of the challenges facing Black entrepreneurs. We sat down with Gizelle George-Joseph, global chief operating officer for Goldman Sachs Research and author of this research, to take a closer look.
To Reach Net Zero, Invest $5 Trillion in Hydrogen
Clean hydrogen has emerged as a critical technology to reach net-zero carbon emissions. This is why more than 30 countries have released official hydrogen strategies and roadmaps to ramp up their hydrogen consumption and develop the required infrastructure. The targets in these strategies show they are poised to increase capacity over 400-fold in this decade as compared with 2020. We spoke with analyst Zoe Clarke in Global Investment Research at Goldman Sachs about green hydrogen, which is produced using renewable energy, and her estimate that $5 trillion of investment is needed in the clean hydrogen supply chain to achieve net zero, as policy, scalability and affordability come together.
'The Biggest Hurdle is Being Let in the Room:' How This Entrepreneur Defied the Odds to Become a Private Equity Success Story
What does it take to be an entrepreneurial success story? In the case of Tracy Graham, founding partner and managing principal of private equity firm Graham Allen Partners, quite a lot. Graham’s life story involved an upward struggle out of poverty in Chicago; being recruited by famed coach Lou Holtz to play football at the University of Notre Dame; and launching a successful career in the private equity industry.
Electrification and Europe’s Path to Net Zero
The European Union is aiming to slash greenhouse gas emissions by 55% by the end of this decade compared to 1990 levels, a goal that GS Research says requires a major – and urgent – push to electrify industries from transport to manufacturing. We sat down with Alberto Gandolfi, head of European Utilities Research, to discuss the steps European economies need to take now on their path to net zero.
How Small Businesses Are Driving U.K. Growth
How are small businesses faring in the U.K.’s post-pandemic recovery? We spoke with Charlotte Keenan, head of Goldman Sachs’ Office of Corporate Engagement International, about the team’s latest research, Engines of Growth, which looks at how small businesses in the U.K. are adapting and thriving during a period of extreme uncertainty.
Why Oil Prices Are Surging but Investment is Drying Up
Even as oil prices climb higher, the flow of money into new oil and gas projects has stalled as investors increasingly avoid industries that produce fossil fuels and heavy carbon emissions. That breakdown between energy prices and capital expenditures is likely to prop up the cost of a barrel of oil, but it could also help support the transition to low-carbon energy. We spoke with Michele Della Vigna, head of natural resources research in EMEA at Goldman Sachs, to discuss the firm’s outlook for commodity prices as investors increase their focus on climate change.
Top Questions Facing the U.S. Economy
The U.S. economy rebounded quickly in 2021, as Goldman Sachs Research predicted, but what will 2022 bring? David Mericle, chief U.S. economist, and Alec Phillips, chief U.S. political economist, highlight some of the key questions for 2022.
Where Are All the Workers?
What's causing workers to drop out of the labor force continues to be a topic of debate among investors and policy makers. In the U.S., the labor force participation rate stood at 61.8% in November, compared with 63.3% in February 2020. We spoke with Daan Struyven, senior global economist at Goldman Sachs, to discuss the firm’s outlook on U.S. and worldwide labor participation.
Partnering with the New Face of Wealth
Affluent women are poised to fuel the next wave of growth in the U.S. wealth management industry. We sat down with Goldman Sachs’ Meena Flynn, co-head of Global Private Wealth Management in the Consumer and Wealth Management Division, to discuss the recent launch of In the Lead, a platform for ultra-high-net-worth women with curated advice, insights and networking opportunities.
Raytheon Tech CIO on Pensions and Retirement
At a recent Goldman Sachs Asset Management Forum, Katie Koch, co-head of Goldman Sachs' Fundamental Equity business, spoke with Robin Diamonte, chief investment officer of Raytheon Technologies, about her career, changes in the retirement landscape and what it’s like to manage one of the largest corporate pension plans in the U.S. with more than $100 billion in assets.
The Case for Investing in Emerging Markets Beyond China
Is there a case for dropping China from emerging market (EM) indices? We sat down with Goldman Sachs Research’s Timothy Moe and Sunil Koul to discuss the drivers behind the growing debate to invest in EMs, without China.
Steve Rattner on China, Deficits and Climate
At the Goldman Sachs Asset Management Forum, Steve Rattner, chairman and CEO of Willett Advisors, spoke with Goldman Sachs’ Katie Koch, co-head of the Fundamental Equity business, and Goldman Sachs' Nora Creedon, an investor in private real estate, about China, U.S. deficits and wage inflation. Rattner manages the personal and philanthropic investments of Michael Bloomberg and Bloomberg Philanthropies, and previously served as counselor to the secretary of the treasury in former President Barack Obama's administration and as lead auto adviser, where he led the successful restructuring of the auto industry during the 2008 financial crisis. Ahead, a few excerpts from their conversation.
Inflation—How Transitory Is ‘Transitory’?
Rising price pressures are raising doubts about whether the surge in prices is temporary or something more permanent. We sat down with Goldman Sachs Research’s chief U.S. economist David Mericle for his latest views on the inflation outlook.
The Outlook for Loan Growth and Capital Markets Activity
After most of the large banks reported their quarterly earnings last week, we sat down with Goldman Sachs Research’s Richard Ramsden, Business Unit Leader of the Financials Group, to discuss the implications for markets.
The Impact of Rising Rates on Equities
Amid rising worries over inflation and rates, investors are anxiously assessing the impact for stocks. We sat down with Goldman Sachs Research’s Ben Snider who shared his thoughts on what he sees as the biggest concerns for equity investors, the interplay between rates and equities, and what to expect for the upcoming earnings season.
How Cable, Telecom, Media and Mobility Companies Are Managing Through the Pandemic
Telecom, cable, media and mobility companies saw a surge of growth when the pandemic began, but how are they faring now that people aren’t quarantined at home? We sat down with with Goldman Sachs Research’s Brett Feldman, Stephen Laszczyk and Eric Sheridan following the firm’s 30th Annual Communacopia Conference to discuss what industry leaders are saying.
What's Pushing Gas Prices So High
Bundle up this winter. Rising power and natural gas prices are pushing up bills for households across Europe and the U.S. At the Goldman Sachs Asset Management Forum, Kaelyn Lucas and Joanna Saw from the corporate credit team explain the drivers that are moving prices up and the outlook for corporates and consumers.
Delta, Vaccinations and Boosters
How are healthcare systems coping with the delta variant? Goldman Sachs Research’s Veronika Dubajova shares key takeaways from her conversations with 30 global healthcare and medical technology CEOs and CFOs who virtually attended the firm’s 18th Annual Medtech Conference last week.
The M&A Boom Down Under
As dealmaking surges across the globe, mergers and acquisitions activity in Australia is hitting new highs. We spoke with Goldman Sachs’ Marissa Freund, head of the mergers and acquisitions business in Australia and New Zealand (A/NZ), about what's fueling the M&A boom and her outlook going forward.
How Private Capital Is Turbocharging Healthcare Innovation
The pandemic is accelerating the pace of innovation and investments across the global healthcare landscape, explain Goldman Sachs’ Jenny Chang, a portfolio manager in Asset Management’s Fundamental Equity business, and Jim Sinclair of the Investment Banking Division. Both shared their views at a recent Healthcare Investor Forum event.
Why Private Equity Funds Are Staying Invested for Longer
The private equity industry is turning to continuation funds as a way to hold on to high-performing assets for longer. We sat down with Alexander Mejia, who leads the private equity sponsor secondary market advisory within the Investment Banking Division to discuss the growing popularity of these vehicles.
Aluminium’s Climate Paradox
Attempts to move the global economy toward net zero carbon emissions over the next decade will continue to raise the prices of commodities—particularly those needed to develop low-carbon technologies. Aluminium is no exception, yet it poses a unique paradox: It is a necessary element of technologies like electric vehicles and solar panels, but its production generates a lot of carbon—2% of all global emissions. We sat down with Goldman Sachs Research’s Nick Snowdon to hear his view of why aluminium prices are going to keep rising over the next five years.
Tokyo’s First Social Bond
In June, the Tokyo Metropolitan Government made history when it sold the first municipal social bond ever issued in Japan—and saw a record-high participation rate from international investors. We spoke with Satoru Kawahito and Hiroaki Kasai from Goldman Sachs’ public sector and infrastructure team in the Investment Banking Division to discuss the transaction and what it means for the future of public sector funding space in Japan.
The Surge in Software Activity
What's driving the surge in M&A activity in the software industry? We sat down with Goldman Sachs’ Ryan Nolan and Nick Pomponi, global co-heads of the Investment Banking Division’s software business, to get the inside scoop.
Jefferies' CEO: World In a 'Dangerous Place' Right Now
As one of the longest-tenured CEOs on Wall Street, Jefferies Financial Group CEO Rich Handler has seen his share of market cycles, crises and technological changes. In a recent conversation with Katie Koch, co-head of Goldman Sachs Asset Management’s Fundamental Equity business, Handler shared his thoughts on the economy, capital markets activity and innovation across sectors.
Evolving Corporate Cash Landscape
Spurred by the uncertainty over the pandemic, corporations have amassed a record amount of cash. We sat down with Goldman Sachs’ Hari Moorthy, global head of transaction banking, to discuss the evolving landscape for cash management.
Recovery in the Healthcare Sector
Management teams from more than 220 healthcare companies participated in Goldman Sachs’ 42nd annual Global Healthcare conference in June to share their thoughts on the recovery, vaccine rollouts and the evolution in the delivery of healthcare services. We sat down with Goldman Sachs Research’s Asad Haider, a business unit leader in healthcare, and Veronika Dubajova, head of Medical Technology Research in Europe, who shared key takeaways from the event.
Asia’s Anticipated IPO Wave
At Goldman Sachs’ annual TechNet Conference, senior leaders from the firm’s Investment Banking and Financing business in the Asia-Pacific region discussed what's driving the recent surge in capital markets activity. Philippa Vizzone moderated a conversation with Aaron Arth, Raghav Maliah and Jung Min on the outlook for corporate activity in the region. Below are excerpts from their conversation.
Digitizing Bonds on the Blockchain
Earlier this year, the European Investment Bank (EIB) issued and settled its first-ever digital bond using Ethereum blockchain technology. We sat down with Mathew McDermott, global head of digital assets, and Maud Le Moine, head of sovereign, supranational and agency origination in the Investment Banking Division, to discuss the transaction and its implications for capital markets and digital finance.
The Impact of China’s Shrinking Population
With China’s shrinking working-age population expected to have a widespread impact on its economy, we sat down with Goldman Sachs Research’s Maggie Wei, who recently published research analyzing the implications.
A Conversation with Elizabeth Burton, CIO of the Employees’ Retirement System of the State of Hawaii
Elizabeth Burton is the chief investment officer of the Employees’ Retirement System of the State of Hawaii, a $20 billion plan that serves about 135,000 people—or roughly one out of every 10 people in the state. At a recent Goldman Sachs Asset Management Forum, she spoke with Katie Koch, co-head of the Fundamental Equity business, and Mike Swell, head of Global Portfolio Management within the Global Fixed Income team, about her views on inflation, asset allocation and the role of private assets.
Vaccines, Recovery and Innovation in the Healthcare Sector
How has the healthcare sector fared during the pandemic? We spoke with Jenny Chang, a portfolio manager who covers healthcare for Goldman Sachs Asset Management’s Fundamental Equity team, on the sectors she and her team are focused on this year.
The Pandemic’s Impact on Private Equity
At a recent meeting of the Goldman Sachs Asset Management Forum, Mike Brandmeyer, global co-head and co-CIO of the Alternative Investments & Manager Selection Group, and Mike Koester, global co-head of the firmwide Alternatives Capital Markets & Strategy Group, discussed the state of private markets more than one year into the pandemic and how portfolio companies have fared during the crisis.
Reflation and Risk
The simultaneous pickup in economic growth and inflation—or reflation—following the hit to both during the COVID-19 pandemic has revived investors’ appetite for riskier assets. Unprecedented levels of fiscal stimulus have helped boost momentum. While stronger growth should sustain that trend into the second quarter, returns on risky assets like equities will likely slow from here, says Goldman Sachs Research’s Christian Mueller-Glissmann. We sat down with Christian to dig into his outlook across asset classes for the year to come.
Lessons From Japan for Countries at Risk of ‘Japanification’
Amid concerns that Europe and China are facing economic and demographic headwinds similar to those responsible for Japan’s decades-long period of anemic growth, we sat down with Naohiko Baba, Goldman Sachs Research’s chief economist for Japan, to discuss how Japan is coping with its challenges and takeaways for other countries that are at risk of ‘Japanification.’
What’s Ahead for China’s Growth in 2021
More than one year into the pandemic and in the wake of the conclusion of China’s 14th National People’s Congress, investors are focusing on how the country will achieve its announced growth target of 6%. At a recent Goldman Sachs Asset Management Forum session, Prakriti Sofat, a portfolio manager who invests in emerging markets, explained the key economic drivers for China this year.
Elevated Equity Valuations
With markets hitting new highs, are equity valuations at a peak? We sat down with Candice Tse, U.S. head of Market Strategy within the Strategic Advisory Solutions team in Goldman Sachs' Asset Management Division, who shared her view on the current valuations.
The Path to Net-Zero Emissions and Inclusive Growth
Just over a year into Goldman Sachs' 10-year plan to deploy $750 billion toward accelerating the climate transition and advancing inclusive growth, the firm has reached a fifth of its target. We sat down with John Goldstein, head of the firm’s Sustainable Finance Group, to discuss progress, client concerns and the impact of the pandemic on companies’ sustainability goals.
Reflation, Real Yields and Risk Assets
In recent weeks, a sharp move higher in Treasury yields has triggered a sell-off in the rates market, which is starting to spill over into other assets. We sat down with Goldman Markets Division’s Josh Schiffrin, global co-head of U.S. and global interest rate products, and Brian Friedman, global head of market strats, who explain the market implications.
The Safe Haven Capital of the World
In times of uncertainty, Switzerland, long known as a safe haven for financial assets, has benefited from strong investor inflows. We sat down with Dominique Wohnlich, head of Goldman Sachs’ Private Wealth Management business in Switzerland, to discuss the impact of the pandemic on the business and what clients there are focused on.
The Evolution of Cryptocurrencies
Could bitcoin replace gold as a store of value? According to long-time cryptocurrency enthusiast Mike Novogratz, founder of Galaxy Investment Partners, bitcoin, blockchain and decentralized finance are poised to disrupt the payment and financial services ecosystem. Goldman Sachs Asset Management’s Katie Koch, co-head of the Fundamental Equity business, and Nora Creedon, global head of REIT and infrastructure strategies, spoke with Novogratz, a former Goldman Sachs partner, at a recent GSAM Forum event.
How Hospitals and Health Care Systems Are Managing Their Financial Health
The hospitals and healthcare systems that are critical to managing our health are also a significant part of the institutional investor landscape. We sat down with Paget MacColl, co-head of the Americas Institutional Client Business within Goldman Sachs Asset Management (GSAM), to discuss the results of GSAM’s 2020 Healthcare Diagnostic, an annual survey assessing the investment approaches and practices of 42 leading healthcare systems and hospitals across the U.S. representing more than $350 billion in investments.
ESG’s Role in Deal-Making
Companies evaluating mergers and acquisitions are increasingly looking at how the transaction may impact their environmental, social, and governance (ESG) strategy, according to Goldman Sachs’ Avinash Mehrotra, global head of the Activism and Shareholder Advisory and Takeover Defense practices. We sat down with Avi to discuss how ESG considerations are starting to influence deal-making.
Takeaways From the Technology and Internet Conference
Goldman Sachs recently hosted the first day of its three-day virtual Technology and Internet Conference, which convened leaders from 75 of the most influential companies in the space. We sat down with Goldman Sachs Research’s Heath Terry, business unit leader for the Technology, Media and Telecom Group, who shared highlights from the event. The second part of the conference will be held virtually on February 10-11.
Takeaways from our 2020 Financial Services Conference
On the heels of the firm’s annual conference, we caught up with Richard Ramsden, who leads the Financials Group within Goldman Sachs Research. Below, he discusses takeaways from his conversations with company management teams, including the outlook for capital returns and strategic investment.
Hedge Funds ‘Renaissance’ Year
The hedge fund industry is poised to post one of its strongest years since the global financial crisis, according to Goldman Sachs’ Tony Pasquariello, global head of hedge fund coverage for the Global Markets Division, who explained the drivers behind the performance and the outlook for 2021.
The Road Ahead for COVID-19 Vaccines
With one or more COVID-19 vaccines on the horizon, investors are looking ahead to the manufacturing and distribution of the vaccine. During a recent daily Goldman Sachs Asset Management (GSAM) Forum event, Dr. John Grabenstein, president of consulting service Vaccine Dynamics SP and former Global Executive Director of Medical Affairs for Merck Vaccines, discussed the logistics of a vaccine rollout with Gurpreet Gill, a macro strategist within GSAM’s Fixed Income team.
A Conversation With Bill Coaker, Jr., CIO of the San Francisco Employees’ Retirement System
As the chief investment officer for the San Francisco Employees’ Retirement System (SFERS), Bill Coaker Jr. has achieved risk-adjusted returns in the top one percent of SFERS’ peer group. At a recent Goldman Sachs Asset Management (GSAM) Forum discussion, Coaker, who has more than 25 years of investment experience, spoke with portfolio managers on GSAM’s Fundamental Equity business, including Katie Koch, Brook Dane, Jenny Chang, Alexis Deladerrière and Laura Destribats.
Why Japanese Insurers Are Turning to Risk Hedges
A low-for-longer interest rate environment can be particularly difficult for insurance companies, which need higher-yielding investments to match their underwritten liabilities. So how are Japanese insurers adjusting to a prolonged period of negative interest rates? We sat down with Yusuke Ochi, who works with insurers and other institutional clients in Goldman Sachs’ Global Markets Division in Japan, to discuss.
The Surge in M&A Volumes
After a challenging second quarter, M&A volumes have picked up in the second half of the year, marking a near return to pre-COVID activity levels. We sat down with Investment Banking Division’s Colin Ryan, co-head of M&A for the Americas and global co-head of Technology M&A, and David Dubner, global head of M&A structuring, about the factors driving activity.
A Conversation with the CIO of the Minnesota State Board of Investment
As the CIO and Executive Director for the Minnesota State Board of Investment (MSBI), Mansco Perry oversees approximately $100 billion in assets. At a recent Goldman Sachs Asset Management (GSAM) Forum discussion, Perry spoke with GSAM’s Katie Koch, co-head of GSAM’s Fundamental Equity business, and Mike Swell, head of Global Portfolio Management within the Global Fixed Income team, on his core investment philosophies and processes, asset class preferences, and the role of diversity.
Measuring ‘Alternative’ Sources of Returns
In recent years, investors have broadened their search for potential returns by taking on non-traditional or “alternative” risks. Many of these alternative risk premia (ARP) have historically been implemented by hedge funds and other institutional investors that develop long-short strategies aimed at mitigating market volatility. We sat down with Goldman Sachs Asset Management’s Federico Gilly and Matthew Schwab to discuss the latest developments in this space.
Real Estate in the Post-COVID World
The pandemic is accelerating underlying trends in the real estate market, such as a decline in office space in major cities like New York and a move to the suburbs, according to Jamie LeFrak, Vice Chairman of LeFrak, a multi-generational real estate investment firm with one of the largest privately held portfolios in the US. Speaking at a recent Goldman Sachs Asset Management (GSAM) Forum event, LeFrak shared his thoughts on real estate in a post-COVID landscape with GSAM portfolio manager Nora Creedon.
Investing in Human Performance
Can technology be used to improve human performance? At the recent Goldman Sachs Asset Management (GSAM) Healthcare Investor Forum, Andrew Firlik, managing partner of JAZZ Venture Partners, spoke with GSAM’s Hugh Lawson about emerging technologies that are helping to improve health and wellness outcomes.
How Startups Are Disrupting the Insurance Industry
Insurance is typically considered to be one of the most traditional industries in financial services and, until recently, has proved to be fairly resistant to change. But changes in consumer behaviors, new technologies and emerging business models are disrupting the industry. We sat down with Goldman Sachs’ Kelly Galanis, head of the Americas Financial Technology sector in the Investment Banking Division, about the emergence of insurance technology startups, known as insurtech, and its impact on the insurance industry.
The Rise of Takeover Activity in Japan
Last year saw a new trend in M&A involving Japanese companies—a sharp increase in large tender offers, including rarely seen hostile bids. The trend has continued in 2020, and may accelerate as a result of the pandemic. Goldman Sachs Research’s Hiromi Suzuki explains the changing times.
Building a More Sustainable Supply Chain
Consumer packaged food companies are changing the way they source raw ingredients to help reduce their environmental and social impact. Goldman Sachs Research’s Jason English spoke with Mary Jane Melendez, General Mills’ Chief Sustainability and Social Impact Officer, Christine Montenegro McGrath, Mondelez’s Chief of Global Impact, and Kate Rebernak, Founder and CEO of FrameworkESG, to discuss how consumer food companies are shaking up their supply chains. What follows is an edited excerpt of their conversation from Goldman Sachs’ inaugural Global Consumer ESG Conference, held virtually last month.
How COVID-19 Is Impacting the College Application Process
Just as the pandemic has accelerated a shift to online learning, it is also reshaping the college application process. On a recent client webcast, Goldman Sachs’ John Mallory, who leads the firm’s Americas Private Wealth Management business, spoke with Amy Alexander and Sai Samboon of Bright Horizons College Coach about the trends shaping the college admissions process.
The Evolution of Airline Financing During a Crisis
The airline industry has faced its fair share of crises, but the coronavirus has pushed it into new territory. Greg Lee of Goldman Sachs’ Investment Banking Division looks at how some airlines are weathering the pandemic.
The Business of the Music
The music industry, propelled by the rise in music streaming services, has seen the value of its assets skyrocket. We sat down with Goldman Sachs’ Aaron Siegel to discuss how the industry is seeking to grow in the midst of a pandemic.
How COVID-19 Is Shaping the Global M&A Outlook
After a decade-long bull run, mergers and acquisition activity slowed sharply earlier this year as global economies came to a halt. But there are signs of life in the M&A market as countries start to reopen, according to the global co-heads of Goldman Sachs’ Mergers & Acquisitions business in the Investment Banking Division—Michael Carr, Dusty Philip and Gilberto Pozzi—who shared their outlooks on the year ahead.
A Virtual Townhall with the Goldman Sachs Firmwide Black Network
Goldman Sachs’ Firmwide Black Network recently hosted a virtual townhall to share experiences with racial discrimination in the US and around the world. Lisa Opoku, global chief operating officer for the firm’s Engineering Division, moderated a discussion with Margaret Anadu, head of Goldman Sachs’ Urban Investment Group, Leke Osinubi, chief risk officer for the Core Engineering business unit, Kene Ejikeme, head of Multi Asset Platform Sales in EMEA, and Sean Legister, a vice president in Multi Asset Sales in New York, on how to bring the Black community—and its allies—together.
A Conversation with Jefferies Financial Group CEO Rich Handler
As one of the longest-tenured CEOs on Wall Street, Jefferies Financial Group CEO Rich Handler says the current crisis is unlike any he’s ever seen and will have profound effects on the economy, consumer behavior and the future of work. Speaking at a virtual Goldman Sachs Asset Management (GSAM) Forum event, Handler shared his thoughts with Katie Koch, co-head of GSAM’s Fundamental Equity business.
Getting Capital to Small Businesses
Bill Bynum, is the CEO of HOPE, a Community Development Financial Institution in Jackson, Mississippi, with whom Goldman Sachs is partnering to get capital in the hands of small businesses. Margaret Anadu, head of the Merchant Banking Division’s Urban Investment Group (UIG) at Goldman Sachs, spoke recently with Bynum about the status of those efforts.
The Popularity of PIPEs Amid an Uncertain Environment
Public companies and investors have turned to private investments in public equity, or PIPEs, to raise capital at historically high levels given the uncertainty around the COVID-19 pandemic. Goldman Sachs Investment Banking Division’s Mike Voris and Evan Green discussed the appeal of the approach and why the trend has continued even as liquidity has returned to fixed income markets.
Managing a Global Workforce During a Pandemic
Goldman Sachs’ Bentley de Beyer had just started in his position as the firm’s Global Head of Human Capital Management when the coronavirus hit. In a recent conversation with Greg Wilson, Head of Institutional Client Businesses at the firm’s Ayco financial counseling business, de Beyer spoke about his transition to the firm, the future of work and how he communicates with a global workforce during the crisis. What follows is an edited excerpt from their conversation.
The Complicated Path to Recovery
The path to full economic recovery is likely to be complicated and gradual, as wide swaths of the economy are forced to rebuild and adapt. At a recent Forum discussion, Goldman Sachs Asset Management’s (GSAM) Katie Koch, co-head of the Fundamental Equity business, spoke with Steve Strongin, senior advisor at the firm and former head of Goldman Sachs Research, about the forward path.
How COVID-19 is Reshaping the Corporate IPO in Asia
The face to-face meetings between investors and executives, often requiring week-long tours of major cities across the globe, are emblematic of the IPO process. But such in-person presentations may soon be giving way to virtual IPO roadshows in a travel-restricted landscape. We spoke with Goldman Sachs’ Bill Chu, Sam Thong, James Wang and Darius Naraghi of the Investment Banking team in Hong Kong about the trends that are reshaping the IPO process in Asia.
The Tech Sector’s Resilience During the Coronavirus Crisis
The technology sector was a strong outperformer during the bull market and, so far, is outperforming other sectors during the current downturn. At a recent Goldman Sachs Asset Management (GSAM) Forum event, Sung Cho and Greg Tuorto, portfolio managers on GSAM’s Fundamental Equity team specializing in technology, and David Fischkoff on GSAM Fixed Income’s credit team, shared their perspectives on why the sector is poised to weather the current crises.
China’s Economic Recovery and Equity Markets
More than two months after imposing quarantines to battle the COVID-19 epidemic, China is on the economic road to recovery. Shao Ping Guan, head of the China Equity team and lead portfolio manager of Goldman Sachs Asset Management’s China Equity strategies, shared his thoughts on the country’s recovery and the resilience of its equity markets.
Why Fixed Income is at the Epicenter of Market Volatility
Even as the Federal Reserve announced plans to expand its bond-buying program, liquidity challenges in the fixed income markets have become another feature of the current crisis. Last week, Goldman Sachs Asset Management’s (GSAM) Mike Swell, co-head, Global Portfolio Management of Global Fixed Income, hosted a client call with members GSAM’s Global Fixed Income team to discuss recent developments and the policy response.
How Coronavirus Is Reshaping Classroom Learning
As universities across the US, Europe and Asia cancel in-person classes in an effort to contain the spread of coronavirus, traditional classrooms are adopting virtual classrooms—which could jumpstart the long-term adoption of remote learning. We sat down with Goldman Sachs’ Adam Nordin, who covers the educational technology sector for the Investment Banking Division, who shared his thoughts on one of the fastest-growing segments in higher education.
How Coronavirus Is Reshaping Classroom Learning
As universities across the US, Europe and Asia cancel in-person classes in an effort to contain the spread of coronavirus, traditional classrooms are adopting virtual classrooms—which could jumpstart the long-term adoption of remote learning. We sat down with Goldman Sachs’ Adam Nordin, who covers the educational technology sector for the Investment Banking Division, and shared his thoughts on one of the fastest-growing segments in higher education.
The Equity Market Selloff
When news of coronavirus first broke earlier in the year, Goldman Sachs Research’s Peter Oppenheimer warned that the markets were being too complacent. With the stock market’s latest plunge, we sat down with Peter to get his views on how severe the selloff could be and the key metrics and risks investors should watch.
Economist Raghuram Rajan on Monetary Policy, Trade and Communities
Raghuram Rajan, former chief economist for the International Monetary Fund (IMF) and India’s former central banker, shared his views on monetary policies, the risk of global supply chains and the importance of communities in a wide-ranging conversation with Goldman Sachs’ Katie Koch, co-head of Goldman Sachs Asset Management’s (GSAM) Fundamental Equity business, at a GSAM Forum event in New York. What follows are excerpts from their conversation.
Evaluating the Health of Healthcare Organizations
The hospitals and healthcare systems that are critical to managing our health are also, with more than $1 trillion in investments, a significant part of the institutional investor landscape. We sat down with Paget MacColl of Goldman Sachs Asset Management (GSAM), which recently released the results of its Healthcare Diagnostic, an annual survey assessing the investment approaches and practices of the nation’s largest nonprofit healthcare systems and hospitals. In our interview, Paget discussed the role of investments amid an increasingly challenging operating environment.
The Outlook for Private Equity Market Activity
With record levels of cash, private equity firms appear poised for another solid year. We recently sat down with Goldman Sachs’ Pete Lyon, who runs the firm’s global sponsors franchise, to discuss his outlook for the private equity industry this year.
India’s Budget and Balancing Act
Asia’s third-largest economy released its national budget on February 1, outlining its roadmap for boosting economic performance after several years of slowing growth. We sat down with Goldman Sachs Research’s India Chief Economist Prachi Mishra who shared her views on the budget announcement.
The Evolution of Infrastructure Investing
As investor focus on infrastructure continues to expand, so too has its scope, according to Goldman Sachs’ Brian Bolster and Michael Sachs, who lead the firm’s investment banking coverage effort for the sector. We sat down with Brian and Michael who shared their views on infrastructure’s evolution.
Sustainable Finance and Davos 2020
Last week, leaders from the public and private sectors convened in Davos, Switzerland for the annual meeting of the World Economic Forum. Three members of the firm’s delegation – Gregg Lemkau and Dina Powell of the Investment Banking Division, and Sheila Patel of the Consumer and Investment Management Division – share their takeaways from the week’s events.
Reducing Cars’ Climate Change Impact With a ‘Life Cycle’ Approach
European regulators are exploring a new, more rigorous method of evaluating a vehicle’s environmental impact. The so-called Life Cycle Assessment approach would broaden the scope of evaluation to include the entire life cycle of a car – not just its on-road emissions. We sit down with Kota Yuzawa of Goldman Sachs Research to discuss the shift’s implications for the future of electric vehicles and as well as investors who have a stake in the space.
Unlocking the Power of Philanthropy
At Goldman Sachs’ inaugural Philanthropy Forum, recently hosted by the firm’s Private Wealth Management business, more than 350 clients convened in New York to hear perspectives from notable philanthropists and learn strategies for maximizing giving and measuring impact. Dr. Deepak Chopra, a pioneer in integrative medicine and personal transformation, spoke about the power of philanthropy with Goldman Sachs’ Meena Flynn. Edited highlights from their conversation are featured below.
The 2020 Asset Allocation Outlook
A modest pickup in global growth is expected to greet investors in 2020. While this optimism has seen investors shift to riskier assets, Goldman Sachs Research’s Christian Mueller-Glissmann says there’s a risk that they could be disappointed…eventually. We sat down with Christian to discuss multi-asset themes and risks for 2020.
Vietnam’s new role in Chinese tech
As tech firms from Greater China seek protection from trade tensions, many are adding manufacturing capacity in Vietnam to build everything from AirPods to TVs. To find out more, we spoke to Goldman Sachs Research’s Allen Chang, who recently visited industrial parks across Vietnam to interview the tech companies expanding there. Learn More
How Food Companies Are Optimizing for Growth and Innovation
After a string of recent mega mergers, food companies are hunkering down to digest their acquisitions—resulting in a slew of spinoffs and divestitures as they look to streamline their operations. We sat down with Goldman Sachs’ Ben Frost, head of Mergers & Acquisitions for the Consumer Retail Group in the Investment Banking Division, to discuss the drivers behind recent banking transactions. Learn More
Democratizing Access to Clean Energy
The sharp fall in the cost of installing and generating renewable power is driving the shift to low-carbon technologies. We sat down with Taylor Jordan – who co-founded impact investment advisory firm Imprint Capital (which Goldman Sachs bought in 2015)– to discuss clean energy investment opportunities. Learn More
The Rise of Family Offices as an Investment Force
Family offices have become one of the fastest-growing investors within the asset management industry. We sat down with Goldman Sachs’ Sara Naison-Tarajano, head of Apex, the firm’s dedicated family-office coverage team in the Consumer and Investment Management Division (CIMD), and Meena Flynn, CIMD’s global head of the Markets Solution Group and one of the partners leading the cross-divisional family-office initiative, who shared their perspectives on the industry. Learn More
One Manufacturer’s Journey from Bulk Chemicals to a Purpose-Led Company
Dutch company DSM was once one of the world’s largest bulk chemical companies. But over the last three decades, it has transformed itself into a cutting-edge, purpose and performance-led science company whose strategy is aligned with the United Nations SDGs. At a recent Goldman Sachs Asset Management (GSAM) Forum event, Katie Koch, co-head of GSAM’s Fundamental Equity business, spoke with Feike Sijbesma, DSM’s CEO of 13 years, about the company’s journey and the impact that corporations can have on climate change and malnutrition, among other global issues. Learn More
Asia's Flourishing Hedge-Fund Industry
Asian hedge funds are one of the bright spots in the hedge fund industry, fueled by strong inflows, robust performance and China’s moves to open up its financial markets. We caught up with Goldman Sachs’ Padideh Raphael, whose team recently hosted almost 500 investors, managers and other market practitioners at the firm’s 20th annual Asia Hedge Fund Symposium in Tokyo. Learn More
The Case for Investing in Japan
Despite Japan’s aging population and mounting public debt, the country offers a host of investment opportunities, according to Katie Koch, co-head of Goldman Sachs Asset Management’s (GSAM) Fundamental Equity business. Koch recently returned from GSAM’s annual Investor Tour, held this year in Tokyo and Kyoto, where the team hosted 20 CEOs, CIOs and heads of equity from large global institutions along with Japanese policy makers, government officials and C-suite executives. Learn More
The State of Small Businesses in the UK
Climate change, advancing technologies and shifting workforce dynamics are among the top priorities for small businesses in the UK, according to survey results released by Goldman Sachs’ 10,000 Small Businesses UK at the firm’s Business 2030 conference held in London earlier this month. We spoke with Goldman Sachs’ Charlotte Keenan, who leads the firm’s Office of Corporate Engagement for the EMEA and APAC regions, to share how entrepreneurs are running their businesses in the face of global uncertainty. Learn More
Investing in German Companies
Faced with geopolitical uncertainty, a slowing economy and negative yields, more than 180 German companies shared their strategies and challenges with investors at Goldman Sachs’ eighth annual German Corporate Conference, held in Munich last month. We sat down with Goldman Sachs’ Michael Schmitz, co-head of the Securities Division in Germany and Austria, to discuss key takeaways from the event. Learn More
China’s Changing Eating Habits
China’s food habits are changing in ways that will have long-term repercussions for the world, says Goldman Sachs Research’s Trina Chen. We sat down with her to learn more about what’s driving the shift in consumption and how China can meet these new demands. Learn More
Creating the Next Generation of Conservation Finance
At a time of rising climate activism, The Conservation Fund (TCF) – partnering with Goldman Sachs – tapped the capital markets with an inaugural debt issuance to scale its mission: to protect 1 million acres of America’s privately held working forests. We sat down with TCF’s CEO and CFO Larry Selzer and John Gilbert, respectively, and Goldman Sachs’ Kyung-Ah Park and Ritu Kalra to talk about the conservation sector’s evolving approach to sustainable growth and the role of capital markets. Learn More
On the (Untapped) Opportunities Within Asia’s Payments Landscape
Online payments are quickly dethroning cash as king across Asia. We sat down with Goldman Sachs’ Geddes Johnson to discuss the untapped opportunities – and latest misconceptions – within Asia’s payments landscape. Learn More
China’s rising STAR market
China’s capital markets reform spread to new fronts this summer with the launch of the Science Technology Innovation Board. The Nasdaq-like stock exchange for emerging companies—dubbed the “STAR” market—has seen its shares rise over 140% since the first IPOs in July. Below, Goldman Sachs Research’s Kinger Lau discusses what distinguishes this market and its applicants, as well as what to expect in the way of foreign access. Learn More
Immigration's Contribution to the US Workforce
Key to any sustainable economic expansion is the growth of an appropriately skilled labor force – something the US has experienced uninterrupted since the global financial crisis. We caught up with Goldman Sachs Research's Abby Joseph Cohen to discuss immigration's contribution to this growth, the subject of her latest report "Immigration and the US Workforce." Learn More
Japan’s Boom in Renewables after Fukushima
Eight years after the Fukushima nuclear disaster, Japan has diversified its energy supply through its investment in renewables. We sat down with Toru Inoue in Goldman Sachs’ Investment Banking Division to discuss the implications for investors and the energy landscape. Learn More
Artificial Intelligence’s Impact on the Workplace
How can artificial intelligence impact the workplace of the future? At the Ayco InnerCircle conference, which brings together practitioners and thought leaders in the human resources industry, Goldman Sachs’ Joe LeRoy of Ayco’s Institutional Business Solutions, spoke with Richard Hughes of UnitedHealth Group, Jeffrey Howell of Panasonic Industrial Devices Sales Company of America and Brian Marcotte of the National Business Group on Health, about the role of AI in their businesses. Learn More
Cash at an Inflection Point
In recent years, when central banks were embarking on quantitative easing, investors approached cash as an asset class afterthought given the rock-bottom yields. But the end of QE – and the prospect of rate volatility – has reignited investors’ interest. We sat down with Goldman Sachs’ Kathleen Hughes and Christina Kopec who discussed how clients are investing in cash – and why they’re focused on more than just yield. Learn More
Asia's Path to ESG Integration
Across Asia, companies are getting more serious about sustainability. We sat down with Goldman Sachs Research’s Sharmini Chetwode, who shared how companies are increasing their disclosures around environmental, social and governance (ESG) factors and how investors are integrating ESG into their investing framework. Learn More
Investing in South Africa
Despite weaknesses in South Africa’s economy, improving business confidence and the promise of structural reforms create the potential for higher economic growth rates going forward, according to Goldman Sachs’ Colin Coleman, the firm’s sub-Saharan Africa head, and Kunal Shah and Ryad Yousuf, who are leading the firm’s market-making expansion into South Africa. We talked with them about the evolving macroeconomic and political landscape in South Africa, as well as the opportunities and challenges for investors. Learn More
The Disconnect in Risk Appetite
As we hit the year's halfway point, investors are faced with an unusual phenomenon in global markets: riskier assets like equities have rallied alongside their safer peers like bonds and gold. Does this mean the asset classes are sending conflicting signals? Not necessarily, says Goldman Sachs Research’s Christian Mueller-Glissmann. We sat down with him to discuss this apparent disconnect in risk appetite and the outlook for the second half. Learn More
5G’s Future in China
The race to roll out 5G networks is accelerating across the globe, with US-China trade tensions putting equipment makers in the spotlight. For China, the transition to faster wireless should bring a wave of opportunities for technology stocks, from increased semiconductor demand to a surge in consumer device upgrades, says Goldman Sachs Research’s Allen Chang. We sat down with him to learn more about the scope of the opportunity and how trade tensions could impact rollout. Learn More
Finding Value in the Private Markets
In a trend that has reshaped the financial landscape, private markets continue to gain traction as a popular alternative for companies to raise money. Mike Voris and Lyle Schwartz, who lead Goldman Sachs’ equity private placements business globally, recently shared their views on the drivers and implications for both companies and investors. Learn More
Financing Social Change Through Social Bonds
Amid the growth of environmental, social and governance (ESG) investing, the private sector is increasingly looking to harness capital markets to finance positive social outcomes. Earlier this month, Goldman Sachs hosted a roundtable in Paris with investors, issuers and ratings agencies to discuss the opportunities and challenges in the nascent social bonds market. We sat down with Goldman Sachs’ Ivan Fillon, Kathleen Hughes, Marc d’Andlau and Kyung-Ah Park to discuss the takeaways from the event. Learn More
The Accelerating Adoption of Hybrid Vehicles
Once lofty expectations for an electric-car future may have been temporarily scaled back, but the adoption of hybrid vehicles is continuing to accelerate. We sat down with Goldman Sachs Research’s Kota Yuzawa who explained why companies are investing in their hybrid technologies before EVs take off in earnest. Learn More
The Challenges Facing European Banks
Ahead of this week's 23rd annual European Financials Conference in Paris -- one of Goldman Sachs' longest-running events in Europe -- we sat down with Jernej Omahen, head of European Financials Research, to discuss the challenges facing Europe's banks and insurers, from earnings pressures, to political and macro uncertainty, to competition from fintech startups. Learn More