Goldman Sachs have issued revised forecasts for the S&P 500 over 3-, 6-, and 12-month horizons:
- 4300, 4500, 4700 respectively
GS cite an increased risk appetite among investors due to inflation "continuing to reset", and enthusiasm about AI.
In summary from the Goldman note published Tuesday:
- Federal Reserve is signaling further rate hikes but inflation is continuing to ease
- The GS view of a market-implied recession probability over the next 12 months is under 50%
- Goldman bullish on Artificial Intelligence, "Artificial intelligence represents a new potential long-term catalyst for profits. Although the size and timing of the impact is uncertain, we recently noted that widespread adoption of AI by companies could lift productivity across the economy and lead to greater earnings than we assume in our baseline forecast”
SPX update, a bouncy Tuesday, Buy the dip is back in style
