Bloomberg Talks Goldman Sach's David Kostin Talks Stocks, Markets
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Mar 18, 2025 
David Kostin, Chief US equity strategist at Goldman Sachs, shares his insights on the current tumultuous market. He labels the 'Magnificent Seven' stocks as the 'Maleficent Seven' due to their negative impact this year. Kostin lowers the S&P 500 price target for 2025 to 6,200, citing economic uncertainty. He discusses strategies for navigating market volatility, emphasizing diversification and investing in less sensitive stocks. The conversation also touches on adapting to the rise of AI and the importance of mental health resources during these turbulent times.
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Lowered S&P 500 Target
- David Kostin, Goldman Sachs' chief US equity strategist, lowered his 2025 S&P 500 price target from 6,500 to 6,200.
- This is due to increased uncertainty and slower economic activity, impacting earnings and valuation models.
Maleficent Seven
- The "Magnificent Seven" tech stocks are now the "Maleficent Seven" due to their negative impact on market performance.
- These stocks, down about 12%, have caused pain for investors.
Market Broadening and AI
- Market broadening is expected, with leadership shifting from the top seven companies.
- Fund managers are focusing on the application phase of the AI transition, targeting software companies.