S&P 500 hits Goldman Sachs' target for the year but their 'irrational exuberance' model intact

Technical Analysis

Author: Adam Button | spx

S&P 500 target of 2853 exceeded

Back in November, Goldman Sachs made what seemed like a bullish call for equities in 2018. They put a year-end target on the index of 2850.

That was a nearly 11% climb from the 2575 level at the time.

"Earnings drive stocks over time and should support the index rising to 2850 at year-end 2018, 3000 at the end of 2019, and 3100 by the close of 2020, representing a price gain during the next three years of 20%," the wrote.

Along with that, they included an interesting chart that compared the current market today 1987-2000.  In that scenario, the market doubled in the final four years of the market.

It's hard to argue that this is anything other than pure euphoria hitting markets.

And I think the party might just be getting started.

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