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GOLDMAN SACHS: STILL BULLISH

7 June 2010 by Cullen Roche 6 Comments

The equity team at Goldman Sachs remains very bullish on the economy and the stock market despite the recent resurgence of the credit crisis.  Though they failed to meet their mid-year target of 1300 by over 20% they are still very bullish about the next 3 month period and the remainder of the year:

“We maintain our 3-month price target of 1160 (+5%) and expect the S&P 500 will rise to 1250 (+13%) at year-end 2010.”

In terms of asset allocation they continue to like the recovery plays with cyclicals and high alpha sectors being overweights:

Our sector baskets suggest US equities have been tracking growth rather than regional trends since April 30. The Defensives vs. Cyclicals gap has been much larger than the Domestic vs. Global split.

Source: GS

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Comments
  • tradeking13

    Their prop desk must be shorting this market.

    06/07/2010 at 12:59 AM
    • Cullen Roche TPC

      Banks earnings should be interesting this quarter. Market’s down about 10% so far this quarter. That’s going to translate to a big hit on the income statement for most of these banks….

      06/07/2010 at 1:22 AM
  • Frederick

    TPC: only mildly related to this post, but what do you think of the overall argument that demographics are going to start seriously working against stocks as the boomer population wave retires?

    06/07/2010 at 7:41 AM
    • Cullen Roche TPC

      That’s so hard to quantify, but it’s hard to imagine that we won’t see a huge move into bonds over the coming 15 years. Boomers are overinvested in equities and twice burned. The recent move into bonds and bond funds could be a long-term bull move for fixed income markets.

      06/07/2010 at 12:48 PM
  • Oscar

    Hum, free advice from Goldman. Anyone who takes there advise always fails it seems.

    06/07/2010 at 12:40 PM