Goldman Sachs strategists expect the stock market to generate modest gains in the coming year with the S&P 500 ending 2024 at 4,700. Their target comes with the expectation that earnings rise to $237 per share in 2024 and $250 per share in 2025.
“Our baseline assumption during the next year is the U.S. economy continues to expand at a modest pace and avoids a recession, earnings rise by 5%, and the valuation of the equity market equals 18x, close to the current P/E level,” Goldman’s David Kostin wrote. “Our forecast falls slightly below the typical 8% return during presidential election years.“
In a new 39-page report laying out the firm’s outlook for 2024, Kostin looks to Taylor Swift to help deliver this message.
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