Goldman Sachs Explains "Rational Exuberance"

The stock market is going to rise a healthy 8% in 2018, predicts Goldman Sach’s Chief US Equity Strategist David Kostin, but the technology sector might not be the tailwind it once was. Driving the move higher will be a “rational” increase in earnings per share, driven to a degree by tax cuts, which benefit large corporations and thus help investors to a meaningful degree. But questions regarding Goldman’s forecast remain the investment bank notes in a December 8 report titled Investor response to our Rational Exuberance: 7 common questions on our 2018 outlook.

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How can analysts be so bullish with stocks at all-time high valuations?

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