Goldman Sachs has upgraded equities to "overweight" for the next three months and bonds to "overweight" for the next 12 months. The firm cites improved valuations, resilient corporate earnings, and slowing inflation as key drivers supporting market performance through 2027. Despite the bullish outlook, Goldman Sachs warned that rising yields and geopolitical risks could sustain elevated market volatility. For equity allocation, the firm specifically favors AI-related stocks and select high-dividend names.