Kostin: “We are approaching the point of maximum optimism”

The stock market has been flying high on fumes of Trump optimism. But when will it end? A report from Goldman Sachs Chief US Equity Strategist David Kostin considers negative earnings revisions and wonders when a market reconciliation with reality occurs, what lies ahead for investors?

Kostin: “We are approaching the point of maximum optimism”

The market exceeding its statistical limits, which has been the case since the US Presidential election, might discover an important force of nature: gravity.

“We are approaching the point of maximum optimism,” Kostin wrote in a note that said the S&P 500 will find mean reversion “as investors embrace the reality that tax reform is likely to provide...