GSAM's Calnon on Markets, Investment Strategy

• The US economy is performing well with expected 2% GDP growth and two Fed rate cuts this year.
• Corporate earnings are robust, with 12% growth this quarter, marking the sixth consecutive quarter of double-digit growth, supported by record buybacks and M&A.
• AI investment is a significant, real trend with substantial global impacts, not market exuberance, and offers continued opportunities alongside broader equity markets (EM, small cap) and alternative energy.
• Geopolitical risks (Middle East) and potential inflation are acknowledged, but the market is expected to manage or 'look through' these pressures over time.

Greg Calnon from Goldman Sachs Asset Management presents a bullish outlook for markets, driven by a strong US economy and robust corporate earnings, particularly in AI-related sectors. He acknowledges geopolitical risks and inflation but suggests markets can 'look through' these challenges, especially if the Strait of Hormuz reopens. Significant investment opportunities are highlighted in AI and alternative energy.