Global Equities Call

Latest edition · July 8, 2026

GS Global Equities Call

Global equities are retreating amid geopolitical tensions in Iran and a sharp 5-day correction in high-beta momentum factors. Analysts remain cautiously constructive on earnings, emphasizing a transition to earnings-led growth despite narrow leadership.

The report highlights a significant 'momo meltdown' in High Beta Momentum (GSPRHIMO), which has seen its worst 5-day selloff since the 2020 pandemic era. Despite this, the authors note that technical positioning has reset and the broader AI-driven growth narrative remains intact. Market focus is currently split between geopolitical risks following US-Iran strikes, upcoming Fed minutes, and an earnings season that analysts expect to sustain growth via double-digit EPS projections in the US, Europe, and Asia-Pacific.

Key takeaways from the latest edition

• 1.High Beta Momentum factors are experiencing a significant 20% drawdown over 5 days, though technical indicators suggest it is not yet oversold.
• 2.Global equities performance in 1H26 is strong but leadership remains narrow, with heavy concentration in AI infrastructure investments.
• 3.Markets are pivoting from a valuation-led rally to an earnings-led one, with consensus forecasting double-digit EPS growth across major regions.

What this series covers

• WHAT WE'RE WATCHING
• Unconstrained Momentum (GSPRHIMO) is having its worst 5-day selloff since Covid
• How is GS US High Beta Momo seasonality?
• CORPORATE MACROSCOPE: A Macro Guide to the Micro World
• STANDOUTS FROM YESTERDAY
• GS RATING AND CONVICTION LIST CHANGES
• More in Macro

Edition archive

• GS Global Equities Call

  July 8, 2026

• GS Global Equities Call

  July 2, 2026

• GS Global Equities Call

  June 29, 2026

• GS Global Equities Call

  June 15, 2026

• GS Global Equities Call

  June 10, 2026

• GS Global Equities Call

  May 19, 2026