Which Equity Markets Will Outperform?

The discussion centers on the outlook for U.S., European, and Asian markets in 2026, with Kunal Shah, co-CEO of Goldman Sachs International, providing insights. Shah suggests the U.S. still has tailwinds from easy financial conditions, AI-driven credit creation, and fading tariff drags, but cautions about high levels of gross leverage and consensual views. He notes structural shifts favoring Europe and Asia, including loosened fiscal constraints and domestic investment, while identifying China's export-driven growth as a competitive threat to Europe. Regarding portfolio protection, Shah favors U.S. rates as a diversifier and acknowledges gold's continued appeal due to de-dollarization and debasement themes, despite crowded positioning.