Look, we get it. You’ve been riding the mega-cap tech wave like everyone else, watching your portfolio grow fat on Apple and Microsoft gains. But Goldman Sachs just dropped some advice that might make you rethink your entire strategy for 2026: it’s time to diversify, people.
Greg Calnon from Goldman Sachs Asset Management basically said what we’ve all been thinking but were too scared to admit – the AI party doesn’t have to end, but maybe it’s time to invite some other guests to the dance floor.
Small Caps: The Scrappy Underdogs
First up: small-cap stocks. While everyone’s been throwing money at the big AI players, Calnon points out that smaller companies are actually on the “front lines” of the AI boom. Think about it – these little guys aren’t trying to go toe-to-toe with Microsoft or Google. Instead, they’re finding clever niches and actually innovating without the bureaucratic baggage of mega-corps.
Plus, their valuations are way more attractive than their big brothers. The Russell 2000 is up 11.3% this year, which isn’t shabby, but it’s got room to run. As Calnon puts it, there’s “a lot of opportunities here” – and honestly, who doesn’t love a good underdog story?
Healthcare: Because AI Needs a Doctor
Here’s where it gets interesting. Healthcare stocks are quietly having their moment, partly thanks to AI hype. The iShares US Healthcare ETF is up 14.5% year-to-date, and it’s not just because people are getting sick more often.
AI is revolutionizing healthcare faster than you can say “ChatGPT diagnoses your symptoms.” From drug discovery to diagnostic tools, healthcare companies are using AI to solve actual problems – not just generate more targeted ads. Calnon calls healthcare “the tip of the spear” for AI investment opportunities, which sounds way cooler than it probably is.
International Stocks: The World is Bigger Than Silicon Valley
Now here’s the kicker – international stocks have actually been outperforming US markets this year. The Vanguard Total International Stock Index Fund ETF is up 26.8% year-to-date. Let that sink in.
Goldman’s crystal ball says international stocks will crush US markets over the next decade. They’re predicting emerging markets will return 10.9% annually, while the S&P 500 might only manage 6.5%. Ouch.
As Calnon diplomatically puts it: “It doesn’t need to be at the expense of the US. But I think we’ve been so caught up in, it’s the US or nothing, that other markets can participate.” Translation: maybe it’s time to look beyond our own backyard.
The Bottom Line
Look, nobody’s saying dump your tech stocks and go all-in on Lithuanian biotech companies. But Goldman’s basically giving you permission to stop feeling guilty about diversifying. The market rally is broadening, interest rates are still falling, and there are opportunities everywhere if you’re willing to look beyond the usual suspects.
Sometimes the best investment advice is the simplest: don’t put all your eggs in one very expensive, AI-powered basket.