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Here Are The 3 Things That Can Blow Up Goldman's Euphoric 4,300 S&P Price Target

Tyler Durden's Photo
by Tyler Durden
Saturday, Dec 19, 2020 - 05:30 PM

One month ago, Goldman's chief equity strategist, David Kostin, decided that it was time to throw caution to the wind and in a note appropriately titled "The Roaring '20s Redux", raised his 2020 year-end price target from 3,600 to 3,700 and also forecast that the S&P would climb by 16% to 4300 at year end 2021 and rise another 7% to reach 4600 by the end of 2022, on the premise that the broad rollout of the covid vaccine would restore normalcy to the economy, facilitating the reflation trade and propping up value stocks which would take the place of growth names as market leaders, while the dovish Fed status quo would enable further multiple expansion as rates remained lower for ever.

To be sure, even Goldman had some problems justifying a 1000 point S&P surge in 2 years when looking at already record-stretched valuations, which the bank admits are currently in the 92% percentile...