Analysts at Goldman Sachs predict the S&P 500 will rise to 2,100 by the end of this year, partly because of the Federal Reserve’s decision last week to keep interest rates unchanged, near zero. Meanwhile, Goldman's economists continue to predict that the Fed will raise interest rates in December.
Analysts at Goldman in their "U.S. weekly kickstart" wrote:
“The no-hike decision eased financial conditions and supports S&P 500 rising to 2,100 by year-end.”
Led by the bank’s chief U.S. equity strategist, David Kostin, reiterated an S&P target that they detailed a month ago. The U.S. stock benchmark was last at 1,973.25.
Stock picking could be difficult, they noted, though being generally bullish on U.S. stocks.
“Elevated uncertainty makes stock-picking more challenging, as equity
correlations stay high and return dispersion remains low,” the note
says.
65% of large-cap stock fund managers underperformed the S&P 500 in the 12 months ended June 30, according to MarketWatch.
Chief market technician at MKM Partners Jonathan Krinsky is confident the benchmark will not hit new highs this year. And not all banks keep supporting their S&P targets after the Fed decision.
Deutsche Bank’s equity team, led by David Bianco, said in a Friday note that it sees the benchmark at 2,100 by year’s end - which is down from Deutsche Bank’s prior target of 2,150.
