Goldman's bullish 2026 market outlook: Is it time to buy the dip?

00:00 Speaker A

David, coming out of the block for you, this Goldman Sachs note really has caught my, my eye. They are recommending buying the dips in the markets. Now stocks are off their highs. Does buying the dip right now make sense to you?

00:10 Speaker B

I I think it does. When you look at the Fed potentially cutting interest rates, nobody’s talking about them hiking rates. You look at unemployment numbers around 4% and you look at uh a situation where the federal government has basically created enough stimulus that they’re going to be running a 1.8 to 1.9 trillion dollar deficit over the next several years.

00:36 Speaker B

I think that’s a very good reason to think the stock market will do well over the next few years upcoming.

00:43 Speaker A

And then welcome back to the uh opening bid round table. We indeed uh missed you here. So what do you think about this Goldman note? Oh, I haven’t seen investors really come out here and aggressively buy this dip. It’s like they’re nibbling around the edges.

00:55 Speaker C

They are nibbling around the edges. Thanks. great to be back here from Spain. I will tell you, look, investors are expecting, I mean the stu the Fed to come in and sort of save the stock market. You saw

01:04 Speaker C

the rise on Friday and at this point, if the markets go down too much, then you start to see announcements, you start to see, hey, the Fed getting more dovish. Uh you have President Trump that has eased off of the uh tariffs on beef, uh on coffee, uh the $2,000 stimulus. So, yes, the expectation is that you don’t want to let this slide go on too much, this volatility go on too much, and you will start to see more dovishness and therefore, uh you know, you’re seeing stocks going rallying because of this.

01:29 Speaker C

If you look at what happened on Friday also, Saaz, you look at even the consumer names that had been that have been getting beaten up. Chipotle was up on Friday. You saw Macy’s that was up even Dave and Busters, which has had a terrible year. That was also up on Friday. So there is this expectation that the Fed is going to step in and you also have the expectation that the government is going to do things to sort of goose the economy so to speak.