What Trade War? Goldman Sachs Sees S&P 500 Exploding to 3,000
Back up the truck and buy stocks, the U.S. trade war with China is old news.
Or so hints Goldman Sachs (GS) - Get Goldman Sachs Group Inc. (The) Report . Goldman strategist David Kostin is out Thursday with a note calling for a 5% rise in the S&P 500 Index undefined to $2,850 by year end. Kostin's S&P 500 target for 2019, a year where growth could fall off a cliff amid heightened trade tensions and rising interest rates, is a healthy 3,000.
Kostin's note was riddled with the upbeat nature of a bullish investment bank. Some of the headlines in the report:
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- "Earnings-driven bull market will continue as S&P 500 rises by 5% to 2850 at year-end 2018"
- "Fundamentals: Above-trend economic growth, profit cycle continues; Buybacks source of net share demand"
- "Strategies: High sales growth, capital return, strong balance sheets, and low labor cost"
Kostin's call is mostly rooted in a bullish outlook for corporate profits, despite modeling for a three-year growth slowdown starting in 2019 (see below). He expects minimal price-to-earnings multiple expansion for the S&P 500 Index next year.
Why you still reading this? Goldman told you to buy, go pull the trigger...
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