Arabic version: فارادان من غولدمان يحث المستثمرين على البقاء في السوق

According to Cnbc, Goldman Sachs co-head of global banking and markets Ashok Varadhan is advising investors to remain in the market despite concerns over interest rates, oil prices and the economy’s durability.

Varadhan cited three factors supporting his constructive outlook: he does not expect the Federal Reserve to raise interest rates this year, he expects oil prices to decline well below $70 a barrel later in 2026, and he sees artificial-intelligence productivity gains supporting a resilient economy. “Stay invested would be my advice,” he said on Goldman’s “The Markets” podcast last week.

He said he expects rates to remain on hold rather than rise in the latter part of the year. After a disappointing jobs report Friday, futures-market traders reduced their expectations for a September Fed move to around 50% on Monday, while odds for October stood at 63%, according to CME Group’s FedWatch gauge.

Varadhan said pressures that lifted inflation, including tariff effects, are beginning to recede. He also said easing geopolitical tensions around the Strait of Hormuz could lessen price pressures. Although AI infrastructure spending may strain resources in the near term, he expects the technology’s productivity benefits eventually to become disinflationary.

West Texas Intermediate futures rose above $80 a barrel Monday as doubts increased over a U.S.-Iran agreement to expand ship traffic through the Strait of Hormuz. Still, Varadhan expects energy prices to retreat later this year. He also said durable nominal growth could help keep realized defaults fairly low, even as heavy credit issuance warrants more compensation for risk. The S&P 500 recently returned to a record high, lifting its 2026 gain to more than 13%.