
Show Notes
After a tremendous rally for US equities, could more gains be ahead – or is it time for investors to protect their portfolios? Ashok Varadhan, Co-Head of Global Banking & Markets, discusses with Chris Hussey on the Goldman Sachs trading floor.
This episode was recorded on October 8, 2025.
The opinions and views expressed herein are as of the date of publication, subject to change without notice, and may not necessarily reflect the institutional views of Goldman Sachs or its affiliates. The material provided is intended for informational purposes only, and does not constitute investment advice, a recommendation from any Goldman Sachs entity to take any particular action, or an offer or solicitation to purchase or sell any securities or financial products. This material may contain forward-looking statements. Past performance is not indicative of future results. Neither Goldman Sachs nor any of its affiliates make any representations or warranties, express or implied, as to the accuracy or completeness of the statements or information contained herein and disclaim any liability whatsoever for reliance on such information for any purpose. Each name of a third-party organization mentioned is the property of the company to which it relates, is used here strictly for informational and identification purposes only and is not used to imply any ownership or license rights between any such company and Goldman Sachs.
A transcript is provided for convenience and may differ from the original video or audio content. Goldman Sachs is not responsible for any errors in the transcript. This material should not be copied, distributed, published, or reproduced in whole or in part or disclosed by any recipient to any other person without the express written consent of Goldman Sachs.
© 2025 Goldman Sachs. All rights reserved. Learn more about your ad choices. Visit megaphone.fm/adchoices
More from The Markets
Markets are scrutinizing the crowded AI trade as investors reassess technology infrastructure spending plans and factor in rising capital costs, says Rich Privorotsky, head of European Equities Trading within Goldman Sachs FICC and Equities. Third-quarter earnings from mega-cap tech will be critical, Privorotsky says on The Markets podcast. Investors are not only watching hyperscaler investment plans but looking for evidence that the spending is translating into revenue growth. He also describes a “seismic shift” from a savings glut to a spending glut, which along with high energy prices is lowering investor risk appetite.
Credit markets have stayed resilient even as interest rates rise and investors scrutinize the outlook for artificial intelligence (AI), says Alex Finston, co-head of US and Asia Credit Trading in Goldman Sachs FICC and Equities. On The Markets podcast, Finston points out that historically, as long as the increase in rates is steady, investors have often seen rising bond yields as an opportunity. He also shares his take on higher-quality AI credit, whether investors should be hedging their portfolios, and municipal bonds.
Hedge fund positioning in equities for long-short strategies is at historically low levels amid ongoing volatility in interest rates and oil prices, says Mark Wilson, head of European Equity Franchise Sales and Hedge Fund Coverage in Goldman Sachs FICC and Equities. And even as investor scrutiny of French government borrowing grows, Wilson points out that there are investment opportunities in Europe in defense stocks and the energy independence theme. In The Markets podcast, he also discusses his outlook for mega-capitalization technology companies, stocks that benefit from German government spending, and US third-quarter earnings.
Trading in artificial intelligence (AI) stocks is evolving as investor interest broadens beyond semiconductor makers and companies that benefit from capital expenditures in AI, says Peter Callahan, US Technology, Media, and Telecommunications sector specialist in Goldman Sachs FICC and Equities. On The Markets podcast, he says investors are increasingly focused on companies that help organizations implement the technology and AI agents for commerce. Callahan also discusses how rising interest rates are impacting technology stocks, the growing dispersion among software companies, and his outlook for semiconductor stocks.
With US 10-Year Treasury yields climbing this week to the highest level since 2007, the bond market may be the biggest risk to further equity gains, says Tony Pasquariello, global head of hedge fund coverage in Goldman Sachs FICC and Equities. Shorting bonds could be a useful hedge for stock investments, he says on The Markets podcast. S&P 500 earnings growth, meanwhile, has been “mind-bending,” helping to keep valuations from becoming stretched, Pasquariello says. However, the increase in earnings may begin to taper off, and US stock returns may slow from their double-digit annual pace. He also sees opportunities in Japan’s TOPIX, as the country’s equity market gets a boost from shareholder reforms and government spending on defense and industrialization.