Growing Pains: Goldman's 2027 Playbook Says Buy Bonds, Short The Euro, And Hedge The AI Hangover

Goldman picked quite the week to tell clients the AI trade is "showing its age."

Hours after Nvidia shares plunged as much as 14% at Thursday's open on Jensen Huang's ignominious exit, the bank's macro strategists led by Dominic Wilson and Kamakshya Trivedi published their Global Markets Outlook 2027: "Growing Pains" (available to pro subs), the asset-allocation companion to Jan Hatzius' "Macro Outlook 2027: Steady Baseline, Downside Risks". The headline forecasts are friendly enough: stable growth, falling inflation, peaking policy rates and positive returns for both stocks and bonds. The fine print is anything but:

A Bigger Test For Markets Than For The Economy