Goldman: Four Reasons Why the Market is Going Much Higher

Last night’s much-buzzed about research report from Goldman Sachs, in which the firm lays out its new S&P targets, contains an interesting rationale for higher stock prices.

Rather than making the bull case based on earnings growth, Goldman believes that the 2% dividend yield on the S&P 500 will serve as a rising floor of sorts. This, along with an expanding PE multiple, augur well for US equities.

David Kostin and his team’s rationale, in four points, below:

kostin

Click over to Scribd for the full report

 

 

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