Goldman Sachs: S&P 5100 points, US stocks bull market will continue

David Kostin, chief U.S. equity strategist at Goldman Sachs, said that corporate profits will become the driving force for further stock market gains next year. S&P 500 earnings per share will increase by 8% to 226 US dollars in 2022, and 4% to 236 US dollars in 2023.

Kostin also said that the Fed will start raising interest rates in July will change the investment environment next year and put pressure on valuations. However, although the real interest rate rises, it will still be negative, investors’ stock allocation will continue to hit record highs, corporate tax rates may remain unchanged, corporate earnings will grow, and stock prices will rise, and the stock market bull market will continue.

He recommends avoiding investing in companies with high labor costs and favoring growth stocks with high profit margins instead of low or unprofitable growth stocks.

Article excerpted from the US Stock Research Agency