So Goldman Sachs just released their 2026 investment outlook, and plot twist: they’re not telling you to throw more money at the same old AI darlings. Instead, they’re basically saying “hey, maybe look somewhere else for once?”
Greg Calnon, who co-heads public investing at Goldman Sachs Asset Management, went on CNBC this week with what amounts to investment heresy in 2025: there are actually opportunities outside of mega-cap tech. Wild concept, right?
Here’s the thing though – he’s not wrong. While everyone’s been obsessing over whether NVIDIA will hit $200 or crash to $50, some pretty interesting stuff has been happening in the corners of the market that nobody talks about at dinner parties.
Small Caps: The Underdogs Having Their Moment
First up: small-cap stocks. Now before you roll your eyes and think “here we go with another small-cap revival story,” hear this out. Calnon’s argument is actually pretty clever.
While the big tech giants are spending billions trying to out-AI each other, smaller companies are quietly carving out profitable niches. They’re not trying to build the next ChatGPT – they’re solving specific problems that the hyperscalers can’t be bothered with. Think of it as the difference between trying to be Amazon and running a really good local bookstore.
Plus, small caps are trading at much more reasonable valuations compared to their large-cap cousins. The Russell 2000 is up 11.3% this year, which sounds modest until you remember that’s without the AI hype machine pumping it up.
Healthcare: AI’s Quiet Success Story
Here’s where it gets interesting. Healthcare stocks are actually benefiting from AI, just not in the flashy way that gets headlines. The iShares US Healthcare ETF is up 14.5% this year, and Calnon thinks this is just the beginning.
While everyone’s focused on whether AI will replace radiologists (spoiler: it won’t, at least not anytime soon), healthcare companies are using AI to actually solve real problems. Drug discovery, treatment optimization, administrative efficiency – boring stuff that makes money.
International Stocks: The Forgotten Winners
Now here’s the kicker: international stocks have quietly been crushing it. The Vanguard Total International Stock Index Fund is up 26.8% this year. That’s not a typo.
Goldman’s long-term outlook is even more eye-opening. They expect emerging markets to return 10.9% annually over the next decade, while the S&P 500 might only manage 6.5%. Suddenly, that “boring” international diversification your financial advisor keeps pushing doesn’t sound so boring.
The reality is that while America’s been having its AI party, the rest of the world has been quietly getting their act together. And with the Fed likely to keep cutting rates, international investments become even more attractive.
The Bottom Line
Look, nobody’s saying you should dump all your tech stocks and go full contrarian. But Goldman’s point is worth considering: the market rally is broadening, and some of the best opportunities might be hiding in plain sight.
As Calnon put 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.”
Sometimes the smartest move is the most obvious one: don’t put all your eggs in one very expensive, AI-powered basket.