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GOLDMAN SACHS: THIS CORRECTION IS SIMILAR TO PAST RECOVERIES

15 July 2010 by Cullen Roche 5 Comments

Goldman Sachs is not giving up hope on their call for S&P 500 1250 by year-end.  They remain very bullish on the second half equity markets and believe the recent downturn in equities is reminiscent of past downturns:

“S&P 500 rose 4.2% this week through Thursday. All sectors advanced led by Energy (+5.5%) while Consumer Discretionary trailed (+2.4%). We maintain our 3-month price target of 1160 (+8%) and expect the S&P 500 will rise to 1250 (+17%) at year-end 2010.
S&P 500 Earnings.  Our top-down EPS forecasts of $78 and $93 for 2010 and 2011 reflect +38% and +18% growth, respectively. Our pre-provision and write-down EPS forecasts are $83 for 2010 and $93 for 2011. Bottom-up consensus forecasts a 44% increase in 2010 to $82, and an 18% increase in 2011 to $96.”

Source: GS

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Comments
  • Plantinuman Racks

    I’m sure Goldman has a lot of stock they want to unload on the unsuspecting public at high prices just in time for them to go short and continue the rapings.

    07/15/2010 at 9:58 AM
  • ObaMao

    Wouldn’t discount what GS is saying as market may bounce back by year the year end largely fueled by Fed’s printing machine after summer meltdown.

    Felix Zulauf from Barron’s roundtable (with impeccable track record) predicted market meltdown this summer to be rescued by Fed printing USD in time to manipulate the economy for Nov election. Felix advise going long from short once Fed resorts to printing mode as you don’t fight against the Fed’s printing machine.

    07/15/2010 at 10:12 AM
  • quark

    I would think that since yields are at such low levels that a hint of money printing money would aggressively back up rates effectively choking off any recovery.

    Goldman Sachs…an entity you can trust…like trusting a priest alone with your 5 year old son.

    07/15/2010 at 10:39 AM
  • Jon Bonanno

    1250? I’l take the under.

    07/15/2010 at 11:11 AM
  • Mikie

    When will these people give up on the belief that the past 30 years were “normal” and as such we will rally back like we “always have”

    07/15/2010 at 1:16 PM