Goldman Sachs Stock: 4 Experts Argue Pros and Cons of ‘Buying the Dip’ Amid Trump Tariff Drama
Written by
G. Brian Davis
Edited by
Jenna Klaverweiden
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The stock market recently tumbled in the wake of President Donald Trump’s announcement of reciprocal tariffs. While most of the reciprocal tariffs have been temporarily paused, some stocks are still down. Take Goldman Sachs (GS), for example. As of April 10, 2025, it’s down 16% for the year.
Thinking about scooping up some Goldman Sachs stock while it’s down from recent highs? Weigh these pros and cons before you buy.
Pro: Goldman Sachs Isn’t Going Anywhere
Founded in 1869, Goldman Sachs has weathered wars, depressions, inflation and political crises. It’s still standing, and stronger than ever.
Financial advisor Evan Drury of U.S. Financial Services kept it simple: “Goldman Sachs has been a great company for the long term,” he said. And when share prices go “on sale” during a dip, that creates a bargain on a long-term investment.
Pro: The Company Does Well During Volatility
Matthew Frankel serves as a contributing analyst for The Motley Fool, specializing in bank stocks. He pointed out that Goldman Sachs’ revenue isn’t as dependent on the consumer economy as other banks.
“Market volatility can cause trading revenue to spike higher. Turbulent stock markets can cause equity trading activity to pick up, and when interest rates are unstable, fixed-income trading tends to spike as well,” he said. “For example, in the second quarter of 2020, when the initial wave of COVID-19 was going on, Goldman Sachs produced its highest equity trading revenue in over a decade.”
Pro: Goldman Has Outperformed Competitors
Over the last five years, through April 10, 2025, Goldman Sachs stock has seen gains of nearly 166%, while JPMorgan Chase (JPM) has seen gains of 121% and Bank of America (BAC) has gained just 44%.
“Goldman’s business is set up to be profitable in any type of market environment,” Frankel said. “And the historical results back this up.”
Con: It Loses Some Sources of Revenue in Bear Markets
Market volatility and corrections aren’t all rainbows and butterflies for Goldman Sachs.
Frankel provided another recent example, showing more mixed results for the bank: “When interest rates were spiking in 2022, Goldman’s investment banking fees declined by 48% year-over-year due to declines in equity and debt underwriting, as well as in advisory services,” he said.
Even so, Goldman came out ahead in other parts of its business. “At the same time, fixed-income trading revenue soared by 38% as interest rates increased rapidly,” Frankel explained.
Con: Timing the Market Sets You Up for Failure
“Market timing is extremely difficult,” said Chad Gammon, owner of Custom Fit Financial. “The markets have been very volatile and as we’ve seen this week there have been dramatic drops and gains.”
Expanding on that point, finance expert Melanie Musson with InsuranceProviders.com explained how you can get cut trying to catch a falling knife. “In reality, it’s impossible to know when precisely the dip hits the bottom. And it’s also impossible to know how quickly or if it will rebound,” she said.
So how should you invest? Musson recommended dollar-cost averaging. “Continue to invest in regular intervals — it’s the safest way to invest. If you can’t resist the urge to buy the dip, invest a bit extra than usual,” she said.
Con: Picking Stocks Is Riskier Than Investing in the Sector
The average investor may not have the skill or data to pick stocks that will consistently outperform the market at large.
“No one knows where an individual stock will go over time,” Drury said. “You’re far more likely to earn strong returns over your lifetime by investing in indices.” That can include financial sector indexes, if you want more exposure to investment banks like Goldman Sachs.
“Strategies are far more impactful than stocks, in the long term,” he said.
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