Goldman follows up on last night's 16,000 Nikkei prediction with a 1900 target for the S&P...

|By:, SA News Editor

Goldman follows up on last night's 16,000 Nikkei prediction with a 1900 target for the S&P 500 (SPY) by the end of 2015. The firm posits a scenario wherein pretty much everything that can go right, does: U.S. stocks will see "strong earnings growth, good dividend yield, and expansion in multiples" on their way to +9% annual returns. As for the risk to stocks posed by Fed tightening, GS notes that "historically, increases in yields from low levels driven by better growth have been associated with rising rather than falling" equities. What about rising rates coupled with anemic growth?