Goldman's Bordlemay Sees `Ping-Pong' Pattern for Stocks

Watch on YouTube ↗  |  September 03, 2026 at 17:02  |  5:47  |  Bloomberg Markets
Speakers
Katherine Bordlemay — Strategist, Goldman Sachs

Summary

Katherine Bordlemay of Goldman Sachs Asset Management expects continued stock-level volatility but a constructive grind higher for US equities supported by broad earnings strength. She favors quality balance sheets, international developed and European equities as diversifiers, and still likes semiconductors and AI hardware even as leadership rotates. She sees hyperscaler financing risk as low relative to their expected AI returns, with valuation as the bigger risk.

  • US equity direction seen as constructive despite ping-pong volatility and wide stock dispersion.
  • Earnings breadth and upward revisions are viewed as the main support for equities over valuations.
  • Higher yields make balance-sheet quality and pricing power more important.
  • International developed equities are highlighted for 18-month outperformance and cash-flow diversification.
  • Europe is favored for infrastructure fiscal spend and dividend-supported returns despite energy risks.
  • AI leadership is expected to stay dynamic, but semis and hardware remain multi-year convictions.
  • Hyperscalers are seen as unlikely to face financing stress, with valuation as the bigger risk.
Ideas
Katherine Bordlemay Strategist, Goldman Sachs 0:19
US equities constructive on broad earnings strength
She expects continued ping-pong volatility under the surface, with stock-level dispersion the widest in two decades, but the direction of travel for equities is constructive because earnings strength is broad by sector, region and market cap, revisions are rising, and AI-driven ROI is becoming a positive corporate investment loop that supports the equity market.
SPY HIGH
Katherine Bordlemay Strategist, Goldman Sachs 2:20
Hyperscaler financing safe; valuation is risk
She does not think hyperscalers face a financing risk from higher rates because they view returns on AI investment as far superior to higher bond yields; the bigger risk is valuation, along with rate-sensitive and weaker-balance-sheet parts of the market.
SKYY MED
Katherine Bordlemay Strategist, Goldman Sachs 2:39
Prefer quality businesses with pricing power
With higher yields, certain market segments and companies with weaker balance sheets are more rate-sensitive, so she wants to be thoughtful and own quality businesses with fortress balance sheets and pricing power that can be more durable and resilient.
QUAL MED
Katherine Bordlemay Strategist, Goldman Sachs 3:20
International developed equities are interesting diversifier
International developed equities are interesting because they have outperformed the US for 18 months, offer a distinct but equally exciting story that complements AI, and have a good cash-flow story that helps diversify portfolios and make them more resilient.
International developed equities HIGH
Katherine Bordlemay Strategist, Goldman Sachs 4:09
Europe offers fiscal infrastructure and dividends
Despite energy-import and war risks, Europe has a large infrastructure and fiscal spending focus that is a distinct secular growth driver, and dividends have historically supplied more than half of Europe/international developed returns, providing downside yield and diversification even if growth is lower.
VGK HIGH
Katherine Bordlemay Strategist, Goldman Sachs 5:04
Still like semiconductors and AI hardware
AI leadership will remain dynamic, but she still likes hardware and semis as a multi-year conviction; the team took profits in semis early in the summer, added back to Mag 7 names, software, and semis as moves got overextended, and still wants nimble trading around AI hardware and software chop.
SMH HIGH
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This Bloomberg Markets video, published September 03, 2026, features Katherine Bordlemay discussing SPY, SKYY, QUAL, International developed equities, VGK, SMH. 6 trade ideas extracted by AI with direction and confidence scoring.

Speakers: Katherine Bordlemay  · Tickers: SPY, SKYY, QUAL, International developed equities, VGK, SMH