Goldman's Recession Suggests Stocks to Fall

Goldman Sachs says that consensus earnings estimates are too high by a smidgeon for this year. If you go by goldman's lower forecast, the s m p 500 trades at a little over 15 times next year's earnings,. So maybe stocks have forther to fall. But how much is difficult to say for two reasons. First, stocks spent a long time at above average prices. There's nothing to say they won't now drop to below average prices. And second, although earnings are said to drive stock prices., Stock prices can sometimes drive earnings.