S&P 1500. That’s Goldman’s brand new end-of-year forecast for the market, representing a 13.9% increased from where things stand right now.
Says strategist David Kostin:
We expect sales to grow, margins to rise, earnings to establish a new high of $96 per share, and return on equity (ROE) to surpass 17% in 2011, driving the S&P 500 towards our year-end target of 1500, or 14% above the current level. Oil prices and interest rates represent key risks to our view. Energy and Information Technology remain our preferred sectors. We move closer to a benchmark position by reducing Financials to neutral from overweight and narrowing the size of our Health Care underweight. Cyclicals over defensives, BRICs sales, and ROE strategies should outperform.
Business Insider Emails & Alerts
Site highlights each day to your inbox.