Goldman Sachs says the S&P 500 will hit 4500 by year-end after it returned 17% in H1
Goldman Sachs holds firm with their baseline case that says the S&P 500 (SP500) will hit 4500 by the end of the year even as the index returned 17% in H1, which was driven predominantly by a narrow group of mega-cap tech names.
"Our baseline view remains that the index will rise to 4500 by year-end as a result of modest earnings growth and a roughly flat multiple," the investment bank said in a recent investor note.
On a separate front, Roth MKM made clear that the last time forward multiples were this high, the corresponding yields were 2.54% for the (US2Y) and 2.75% for the (US10Y).
Currently, the S&P 500 and its mirroring ETFs (VOO), (SPY), and (IVV) hover near the 4410 level after reversing from their earlier week high of 4458. Moreover, Wall Street has not seen the 4500 marker in the S&P 500 since April 21, 2022.
While the S&P 500 has garnered roughly 15% year-to-date, it has not been the top area of investment. See below a breakdown of the sector, style, and strategy performance for market segments in 2023 that Goldman Sachs provided:
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Source: Seeking Alpha
