S&P 500 Sentiment Index At Maximum High: Goldman Sachs

Goldman Sachs predicts on a tactical basis that the S&P 500 will decline during the next month, while strategically the potential for upside exists with 5% earnings growth in 2015.

David J. Kostin and team at Goldman Sachs in their US Equity Views report titled: “Prospects for US stocks in 2015: A tactical and strategic view” anticipates IT, energy and telecom services will outperform the  S&P 500 over a 12-month horizon.

S&P 500 at 2100 by end-2015

The Goldman Sachs analysts point out that their U.S. equity market Sentiment Indicator currently stands at a maximum possible reading of 100, indicating the S&P 500 has near-term downside risk during the next six weeks. Though on a tactical basis, S&P 500 indicates downside,...