Goldman Says Megacap Bull Case Might Take S&P 500 to 6,000
Mar 29, 2024 - bloomberg.com
Goldman Sachs Group Inc. strategists are maintaining their year-end S&P 500 forecast level of 5,200, despite considering a scenario where tech megacaps could drive the index up by an additional 15%. The firm's decision to stick with its current prediction is based on the belief that the federal funds rate path and economic growth trajectory are already fully priced into the markets.
The strategists, led by David Kostin, expressed uncertainty about the outlook for valuations, prompting them to explore potential scenarios outside of their base case. This exploration is a proactive measure to account for potential market shifts that could impact the S&P 500's performance.
Key takeaways:
Goldman Sachs Group Inc. strategists are maintaining their year-end S&P 500 forecast level of 5,200.
They also consider a scenario where tech megacaps could drive the index up by an additional 15%.
The firm's current prediction is based on the federal funds rate path and economic-growth trajectory being fully priced by markets.
Due to uncertain outlook for valuations, the analysts are exploring potential scenarios outside of the base case.
