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Goldman Sachs: Yeah, August Sucked, But It'll Get Better Soon
Source: FactSet and Goldman Sachs Global Investment Research
Despite the fall of the Dow in a volatile market, Goldman Sachs remains confident in US stocks. In a weekly note to clients last week, Goldman strategists say major global and US markets are going to rally. In particular, chief equity strategists David Kostin believes the S&P 500 will close at 2,100 at year’s end, an 8% increase. That’s a bold prediction: on the same day Goldman released its report, the S&P closed only 3% above the most recent low reached on Aug. 25 (1,868). Goldman is also in the “December camp” in the ongoing debate on when the Fed will raise benchmark interest rates. With REITs and China still picking up the pieces, a lot, including the accuracy of Goldman’s report, is riding on the Fed’s decision next week. [BI]
