Bloomberg Talks
David Kostin Talks Markets
May 14, 2024
Goldman Sachs Chief US Equity Strategist David Kostin shares insights on S&P 500 target of 5200 by year-end, analyzing economy, earnings, evaluation, and money flow. Discusses market outcomes post-election, Federal Reserve actions, and investor considerations. Explores retail investors' influence on markets, meme stock mania, and identifies true market drivers.
05:38
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Quick takeaways
- Goldman Sachs predicts S&P 500 to reach 5200 by year-end based on 3% economic growth and high valuation.
- Market volatility expected around election due to timing uncertainty and potential policy changes post-election.
Deep dives
Analysis of S&P 500 Target for the Year
The S&P 500 target for the end of the year is set at 5200 based on fundamental analysis, considering aspects like economy, earnings, valuation, and money flow. The target reflects a growth assumption of around 3% in the economy, 8% in earnings, and a high valuation of nearly 21 times earnings at the index level. While the possibility of a multiple expansion exists, it is deemed less probable. Any adjustments to the target would depend on changes in these key variables.
