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Goldman Sachs lifts its forecasts for the S&P 500 (SPY), as David Kostin and company now say...

Goldman Sachs lifts its forecasts for the S&P 500 (SPY), as David Kostin and company now say they expect the index to gain 5% by year-end to 1,750, 9% to 1,900 in 2014, and 10% to 2,100 in 2015. The rationale: expectations of above-trend real GDP growth beginning next year (Mr. Evans' "escape velocity" ?) coupled with P/E multiple expansion to 16x. Furthermore, dividends should rise ~30% over the next two years, bolstering the firm's claim that dividend-paying equities (DVY) are one of the only places U.S. investors can look to for income-generation. Some of GS's dividend picks, as listed on MarketWatch: Mattel (MAT), Ford (F), Philip Morris (PM), Walgreen (WAG), Chevron (CVX), U.S. Bancorp (USB), GE, Western Union (WU), Dow Chemical (DOW), and AT&T (T).
Comments (11)
  • Time to sell!
    21 May 2013, 06:42 AM Reply Like
  • 2100 in 2015...I wonder what they expect GDP to be in 2015....I expect
    a tasty selloff in the next 2 and half years....
    21 May 2013, 06:57 AM Reply Like
  • I recall after the election last November that sachs came out with a line about how the market would sell off hard in the first half of 2013 but rally to new highs by year end

     

    paper - ink - never - refuse
    21 May 2013, 07:06 AM Reply Like
  • I wouldn't take any advice from Goldman Sachs.
    21 May 2013, 07:39 AM Reply Like
  • Does anyone take GS seriously? They're often wrong and seldom honest. The market has gone parabolic, and those straight up moves always come straight back down. Here is where we are in the Bull/Bear Cycle: http://bit.ly/WpVqYk
    21 May 2013, 07:55 AM Reply Like
  • If GS publically says "looking good", I think "problems"
    21 May 2013, 09:03 AM Reply Like
  • Does this mean they are putting on short positions?
    21 May 2013, 09:23 AM Reply Like
  • Goldman was bearish on several of these "dividend" darlings at the beginning of the year.
    21 May 2013, 10:30 AM Reply Like
  • They are the Cramer of Big Banks, except they have about 6 Cramers - the Chief investment strategist says one thing, BLANKfein says another, Abby Cohen - she's still alive huh? - is always bullish. By the end of the day you can't remember where they are. Cramer is the broken clock - right twice a day - but he never goes back to review his 4000 picks of the year. Remember RIMM , remember AAPL at 560 , yep he picked em. I think either the Red Sox or the Cardinals or the Reds or the Yankees or the White Sox or the Cubs will win tonight. and then there's Laslo Birinyi who says the market will go to S&P 1770 but won't predict where it goes after that , it has to get there first but then he'll think again. And if not he'll disappear again for 5 years until you forget what his last joke was. BUBBLE, TOUTS.
    21 May 2013, 10:50 AM Reply Like
  • Where is Abby Joseph when you need her---another GS one call wonder---its easy when the powers to be decide to buy & tell you about it a week later just in time for you to chase their stock higher--Why listen to them OH I forgot there doing GODS work--right Lloyd--Bags of S$%^ one and all.
    21 May 2013, 11:32 AM Reply Like
  • Great timing GS.
    23 May 2013, 06:10 AM Reply Like
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