More on Goldman Sachs cutting its forecast for the S&P500

I referred to the downgraded forecast from Goldman Sachs in a post on Monday:

• S&P500 GS (chief equity strategist) targets 4300

That post was mainly about Goldman Sachs downgrading their US GDP forecasts.

Also on Monday I posted:

• Goldman Sachs' Blankfein says firms should be prepared for a recession.

Plenty of nourishment for the bears from GS yesterday!

Anyway, back to that S&P 4,300 projection, adding a little more now, the important snippet:

• we cut our year-end target to 4300 (from 4700)
• reflects higher interest rates and slower economic growth than we previously assumed
• Our new baseline forecast assumes no recession
• A recession would see the index fall by 11% to 3600 as the P/E drops to 15x

ps. Morgan Stanley are more bearish:

• Morgan Stanely - forecasting S&P towards 3,400