Goldman Sachs shares bullish estimations on S&P 500, believing it'll rise by 7% over the next 12 months
Per Business Insider
Goldman Sachs has just shared their bullish estimates regarding the S&P 500, saying they believe that the index could rise by 7% over the next 12 months. However, the bank's economists also shared that there was still a 25% chance that a recession could happen.
This comes as in the next 12 months, the S&P 500's would reach 4,700. However, should a recession happen, it could see the index dropping down to a low of 3,400.
"We prefer to maintain upside exposure to equity while utilizing the options market to hedge the potential 23% downside in a recession scenario,"
The note by Goldman Sachs towards its investors encouraged them to hedge for many reasons, including "mega-cap rally narrowed market breadth." It was also noted that downward breadths were previously followed by the S&P 500 significantly sliding down.
In mid-March, Goldman Sachs increased its 12-month US recession probability by 10% to 35% before returning to its now 25% estimate.
In September 2022, Goldman Sachs reportedly stopped at 16% for the S&P 2500 2022 target as the Feds showed signs of a rate-hike slowdown. This came as bank analysts expected central bank interest rates to be higher than previous estimates.
See flow at unusualwhales.com/flow.
Other News:
- Goldman Sachs Stops at 16% for S&P 2022 Target as FED Shows Signs of Rate-Hike Slowdown
- Goldman Sachs increases 12-month US recession probability by 10%, now at 35%
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