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.