GOLDMAN TURNS POSITIVE ON STOCKS, DOWNGRADES CREDIT 🔸 Equities: Upgraded to Overweight (3- & 12-month) due to Fed dovishness, fiscal easing, and AI-driven growth. S&P 500 targets: 6,800 / 7,000 / 7,200. Large-cap tech & financials lead, supported by earnings growth rather than valuations. International opportunities in Europe, Japan, and Asia ex-Japan. 🔸 Credit: Downgraded to Underweight near term. Spreads tight, limited upside; rising high-yield defaults are a headwind. 🔸 Commodities: Shifted to Neutral for diversification and upside in gold & copper. 🔸 Macro outlook: Fed expected to cut rates twice more this year (50bp possible) and twice in 2026; late-cycle environment favors equities over credit. 🔸 Risks: “Three bears” — growth shock (unemployment rises, AI falters), rate shock (Fed not dovish or yields surge), dollar bear (hurting foreign investors).(*Walter Bloomberg)