S&P 500 1977.48 up 9.91.
From MarketBeat:
Goldman Sachs GS just went from a bear to a bull on the S&P 500, becoming one of the more optimistic firms on Wall Street.After GS had bagged every public-employee pension fund, every endowment, in fact everyone who would listen to their long-only index pitch ("we can do swaps to avoid speculative position limits if you prefer") we posted this in December 2008, just off the sub-$30 low:
The firm–which earlier this year said stock valuations were “lofty by almost any measure“–boosted its S&P 500 year-end price target to 2050 from 1900. Such a rally would represent a 4.2% gain from Friday’s close on top of the 6.5% gain the S&P 500 has already achieved this year–and would mark an above-average year for the index if it came to pass.
Still, Goldman didn’t sound too excited about it’s latest forecast.
“We expect the equity rally will continue, but the trajectory will be shallow,” Goldman strategist David Kostin wrote to clients. “Domestic economic growth is accelerating, and earnings will continue to rise, but further P/E multiple expansion is unlikely given our and the market’s expectation for a Fed hike within 12 months.”
The S&P 500 jumped 0.5% to 1978 and sits less than 1% from its all-time high.
Goldman Sachs started the year with a cautious view on U.S. stocks. The firm was concerned about pricey valuations and the fact that earnings growth would need to support a continued rally. Mr. Kostin maintained a 1900 price target on the S&P 500, a level that was surpassed last month for the first time.
Companies in the S&P 500 trade at a price-to-earnings ratio of 19.4, based on the past 12 months’ earnings. That trailing ratio, which was 18.4 a year ago, is above its historical average of about 17.
“US equities soared 42% during the past 18 months but the stellar return borrowed heavily from the future,” Mr. Kostin said. “History shows S&P 500 rallies and the P/E multiple expands during the year prior to the start of a tightening cycle. But after tightening begins, the multiple contracts and the index typically delivers only modest returns.”...MORE
Goldman Cuts Oil Forecast to $45 (vs original $200) Sees Bottom
If interested, see also:
Goldman: We Got Our Shorts On, Oil not Going to $200.00
It’s official, Goldman capitulates on oil
And fifty or so more...
