Goldman Sachs CEO David Solomon believes that U.S. economic growth could improve with more trade stability. He highlighted that stable policies boost business confidence. Solomon mentioned an increase in strategic mergers and acquisitions, indicating that companies are now more willing to invest despite wider economic uncertainties. He also pointed out that Goldman’s asset and wealth management division has the potential to grow at a high single-digit rate. Even though there are strict standards for acquisitions in this division, the firm is open to select opportunities.

Market Volatility and Strategic Positioning

As trade stability approaches, we can expect a drop in market volatility in the coming weeks. The CBOE Volatility Index (VIX), which has been in the mid-teens, might decline further. This makes strategies like selling VIX futures or shorting out-of-the-money puts on major indices more appealing. This marks a shift from the sharp fluctuations we saw during the policy uncertainties of early 2024. The rise in strategic mergers and acquisitions is a positive sign for stocks, especially in the tech and healthcare sectors. M&A deal volume for August 2025 has reached its highest point in 18 months, surpassing $350 billion globally. This suggests that buying call options on the S&P 500 (SPY) or specific industry ETFs could be smart to take advantage of renewed corporate confidence. This increased activity is good news for investment banks that advise on these deals, making their stocks attractive. During the M&A boom of 2021, we saw how fee income significantly boosted earnings for the financial sector. Therefore, call options on the Financial Select Sector SPDR Fund (XLF) or major banking companies could offer notable gains.

Asset and Wealth Management Growth

The strength in asset and wealth management indicates strong growth in this area. Assets managed within the industry have already increased by 6% year-to-date in 2025, thanks to stable markets and new capital inflows. We should consider derivatives related to large asset managers, as they are well-positioned to benefit from market growth and an expanding client base. Create your live VT Markets account and start trading now.

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