Comments on Monday (US time) from Goldman's chief U.S. equity strategist David Kostin
reiterated S&P 500 target by the end of 2022 of 5,100
"We expect that these gains will be driven primarily by earnings per share growth of 8% combined with a stable P/E multiple. This pattern would be consistent with the decomposition of returns usually seen at this point in the business cycle and would mimic the pattern of this year, where earnings lifted the market to record highs while the index multiple actually contracted"
Yesterday we had Goldman's chief economist Jan Hatzius slashing his US GDP forecast (although Hatzius was citing Manchin's abandoning Biden)
- Goldman Sachs has lowered its US economic growth forecast
- "The Omicron variant is also likely to shift political attention back to virus-related issues and away from long-term reforms"