Over the past three years, we have focused on capturing potential investment opportunities in developed markets aligned with economic security themes: reshoring critical supply chains, ensuring access to key resources, and strengthening national security. Today, these themes have intensified, and we believe now is an opportune time to invest in companies aligned with them.
1. Onshoring, reshoring and nearshoring remain in focus
Mentions of onshoring, reshoring and nearshoring on corporate earnings calls remain elevated. Geopolitical tensions and trade fragmentation have underscored the risk of overreliance on countries for key resources and manufacturing.
Source: Bloomberg and Goldman Sachs Asset Management. As of March 1, 2026.
2. US domestic manufacturing has received a boost
After decades of underinvestment, a wave of US investment into domestic manufacturing has occurred, and we believe the environment remains supportive of further capital spending as reshoring continues.
Source: Federal Reserve Economic Data. As of October 31, 2025.
3. An age of AI-driven power demand
AI, reshoring, and the rise of electric vehicles are driving electricity demand in developed markets. We expect US electricity demand to increase sharply by 2030, with data centres the main source of demand growth.
Source: Masanet et al. (2020), IEA, Cisco, Goldman Sachs Global Investment Research. As of February 28, 2026. The economic and market forecasts presented herein have been generated by Goldman Sachs Asset Management for informational purposes as of the date of this presentation. They are based on proprietary models and there can be no assurance that the forecasts will be achieved. Please see additional disclosures at the end of this presentation.
4. Security threats are causing a rise in defence spending
Geopolitical risks have heightened defence spending in Europe. This shift is most evident in Germany, which has seen a sustained increase in spending in recent years, with significant increases expected to follow.
Source: Goldman Sachs Global Investment Research, Bundesministerium der Finanzen and Goldman Sachs Asset Management. As of January 14, 2026. The economic and market forecasts presented herein have been generated by Goldman Sachs Asset Management for informational purposes as of the date of this presentation. They are based on proprietary models and there can be no assurance that the forecasts will be achieved. Please see additional disclosures at the end of this presentation.
5. The return of real assets
Geopolitical tensions and AI disruption are shifting investor focus toward old-economy sectors. We view these as essential areas to gain exposure to, but selectivity is important to avoid overextended, low-return companies.
Source: Goldman Sachs Global Investment Research. As of February 28, 2026.
Glossary Onshoring: The strategic process of conducting business operations, manufacturing, or services within a company’s home country rather than in a foreign country.
Reshoring: The practice of transferring a business operation that was moved overseas back to the country from which it was originally relocated.
Nearshoring: The practice of transferring a business operation to a nearby country, especially in preference to a more distant one.
See Glossary for definition of terms used in reference to Products
Risk considerations and disclosures
Equity investments are subject to market risk, which means that the value of the securities in which it invests may go up or down in response to the prospects of individual companies, particular sectors and/or general economic conditions. Different investment styles (e.g., “growth” and “value”) tend to shift in and out of favor, and, at times, the strategy may underperform other strategies that invest in similar asset classes. The market capitalization of a company may also involve greater risks (e.g. “small” or “mid” cap companies) than those associated with larger, more established companies and may be subject to more abrupt or erratic price movements, in addition to lower liquidity.
Index Benchmarks
Indices are unmanaged. The figures for the index reflect the reinvestment of all income or dividends, as applicable, but do not reflect the deduction of any fees or expenses which would reduce returns. Investors cannot invest directly in indices.
The indices referenced herein have been selected because they are well known, easily recognized by investors, and reflect those indices that the Investment Manager believes, in part based on industry practice, provide a suitable benchmark against which to evaluate the investment or broader market described herein.
References to indices, benchmarks or other measures of relative market performance over a specified period of time are provided for your information only and do not imply that the portfolio will achieve similar results. The index composition may not reflect the manner in which a portfolio is constructed. While an adviser seeks to design a portfolio which reflects appropriate risk and return features, portfolio characteristics may deviate from those of the benchmark.
Economic and market forecasts presented herein reflect a series of assumptions and judgments as of the date of this presentation and are subject to change without notice. These forecasts do not take into account the specific investment objectives, restrictions, tax and financial situation or other needs of any specific client. Actual data will vary and may not be reflected here. These forecasts are subject to high levels of uncertainty that may affect actual performance. Accordingly, these forecasts should be viewed as merely representative of a broad range of possible outcomes. These forecasts are estimated, based on assumptions, and are subject to significant revision and may change materially as economic and market conditions change. Goldman Sachs has no obligation to provide updates or changes to these forecasts. Case studies and examples are for illustrative purposes only.
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Date of first use: April 07, 2026
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