Goldman's Hatzius and Snider on the Outlook for 2026 – Odd Lots

Goldman's Hatzius and Snider on the Outlook for 2026 – Odd Lots

Bullish:

$INFRA - Infrastructure and power companies benefiting from AI buildout as electricity becomes a binding constraint for data centers.
$SPY - S&P 500 target of 7600 for 2026 based on strong earnings growth and productivity acceleration from AI.
$PRODUCTIVITY - Accelerating productivity growth expected to continue with more AI adoption, supporting economic growth without inflation.

Bearish:

$SEMICONDUCTORS - AI infrastructure spending growth expected to decelerate in 2026, requiring more debt to sustain, making investors uncomfortable.
$HOUSING - Housing market expected to remain weak with sideways movement and low price appreciation due to poor affordability and high mortgage rates.
$CREDIT - Credit expected to underperform despite good fundamentals due to very high valuations priced for perfection.