As 2025 starts to come to an end, investors need to be preparing for how they expect to position their assets for 2026. Tactical Bulls has been tracking the start of many firms making their predictions for 2026. Some initial S&P 500 price targets have already been issued.

Goldman Sachs sees gains of roughly 11% for the S&P 500 by the end of 2026, but the firm has also identified individual themes for its clients. The theme of A.I. is prevalent at most firms and Goldman Sachs is no exception.

Goldman Sachs Asset Management sees several drivers for continued market strength in 2026. More prospect for rate cuts by central banks was noted first, followed by a continued heavy spending on A.I. from major technology companies and a revival in dealmaking. Goldman Sachs Asset Management has also stressed the need for a dynamic approach to investing within macro, market, and valuation factors.

Goldman Sachs is also speaking the language of tactical investors in its full 50-plus page report. The firm said in its 2026 outlook:

When traditional investments appear expensive, we believe a strategic approach beyond simply following benchmarks is crucial. Investors should consider actively managing their portfolio’s mix of equities, bonds—and the securities underlying each allocation—strategically tilting portfolios to adapt to market conditions.

An update to its September target for the S&P 500 reaching 7,600 by the end of 2026 (roughly an 11% gain at that time) should be issued in the coming weeks. Still, the firm sees easier monetary policy creating opportunities across multiple asset classes:

• Fixed income (short-dated U.S. Treasuries and investment-grade credit);
• Small-cap stocks;
• Commercial real estate;
• Emerging market local bonds and external debt in U.S. dollars;
• and AI capital spending should remain durable next year, with a growing trend of large tech players seeking debt financing for AI capex.

ALSO READ: A.I.’s TAKE OF THE TOP 2026 INVESTING THEMES

The 2026 outlook noted that global dealmaking is already showing signs of a strong recovery, which the firm believes could extend into 2026. Look for a resumption of demand for private credit financing. It also sees the climate for a strengthening in M&A with more interest in smaller companies.

Goldman Sachs also expects investors to broaden out into the circular economy — waste and materials, sustainable food and agriculture, and ecosystem services and water.

As a reminder, these views can all change on a moment’s notice and this report has been condensed from a much larger report. Goldman Sachs updates its Conviction Buy List at the start of each month, and each of those stocks are generally given an outlook with a 12-month horizon.

Until then, it’s time for investors to start preparing how they want their assets positioned for 2026. Most tactical investors have already started.