Goldman Sachs’s equity team led by Chief Strategist David Kostin has given a mid-year review of where the market is, where it’s going and how it’s going to get there as well as make big market predictions.
The Goldman Sachs Group, Inc., an American bulge bracket investment banking and securities firm founded in 1869, engages in global investment banking, securities, investment management, and other financial services primarily with institutional clients. It also provides mergers and acquisitions advice, underwriting services, asset management, and prime brokerage to its clients.
If you want to know market changes in the next time, prices of gold and oil by the end of 2011 for example, let's take a look at top ten big Goldman Sachs’s market predictions.
The S&P 500, a free-float capitalization-weighted index of the prices of 500 large-cap common stocks actively traded in the United States, will reach 1450 by the end of 2011 and 1500 by the second quarter of 2012
The U.S. GDP in 2012 will grow faster than that of 2011 (3.2% vs. 2.6%)
The inflation will remain about 3.1% with core at 1.3% and personal consumption expenditure at 1.1%. Wage inflation will reduce to 8.3% by the end of 2012 from 9.1%
Oil, gold and copper prices will continue to rise. Brent crude oil will hit $140/barrel by the end of 2011 and gasoline prices increase 11%
The interest rates won’t move until 2013
The energy sector will witness strong sales growth of 27% in 2011 but modest sales growth in 2012
Profit margins will rise slightly in 2011 to 8.9% for S&P 500 companies and reduce inconsiderably to 8.8% in 2012
EPS (Earnings Per Share) for the S&P 500 will hit $104 in 2012 from $96 in 2011
ROE (Return on Equity) for the S&P 500 will hit 17% in 2011 and 18% in 2012
According to Goldman Sachs, it is beneficial to buy companies with solid revenue growth and exposure to the BRIC countries (Brazil, Russia, India and China)
Big Goldman Sachs’s Market Predictions
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2011 Denver Housing Market Predictions
Top Ten Big Goldman Sachs’s Market Predictions