FINSUM + Magnifi: Goldman Publishes a Crucial Call on the S&P 500

(January 2021)


The market has been a bit choppy to start the year, including a loss over the last five days. The weakness of last week came as somewhat of surprise to investors as Biden announced that a nearly $2 tn stimulus package was in the works. That said, Goldman Sachs is undeterred in their view of the economy. In fact, it is exactly their view of the economy that drives their forecast. The bank put out a report last week that calls for a 14% gain in the S&P 500 this year. The reason why is that Goldman believes there is going to be GDP growth of 6.4% this year compared to a consensus estimate of 4.2%. Alongside this expansion, the bank thinks earnings per share will spike by 31% compared to a decline of 17% in 2020.


Source: Market Watch
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