Goldman Sachs says the recent drop in risk assets like crypto is a chance to buy, not the start of a

Goldman Sachs Goes Against the Grain: Buy the Dip, Crisis in Hormuz Will Be Short-Lived

Markets are in turmoil, but Goldman Sachs isn't panicking. In fact, they're doing the opposite. The investment bank is telling clients to see the recent sell-off as a chance to buy, not the beginning of some long, painful bear market. And a lot of their confidence comes down to one thing: they think the trouble in the Strait of Hormuz will be over in about a month.

In a report out Wednesday, the Goldman Sachs strategy team, led by Peter Oppenheimer, laid out their case. Sure, they admit risk assets are up against some "significant headwinds." You've got the war in the Middle East, plus all the uncertainty around AI and how it's going to shake things up. But here's their counterpoint: the economy is still pretty tough, and corporate earnings are growing strong. So any downturn we see now probably won't be too deep or last too long.

A huge part of this whole optimistic picture hinges on energy. Specifically, Goldman's top oil strategist, Daan Struyven, has a pretty clear timeline. He figures that crude shipments through the Strait of Hormuz will stay super low for the next five days or so. But after that, things should start moving. He's expecting a bounce back to 70% of normal volume within two weeks, and then full-on 100% recovery after about four weeks.