May 24, 2010

Goldman Sachs (GS): Still Bullish, This Is A Normal Correction

Goldman Sachs (GS) remains very bullish on US equities,

“Developments over the past two weeks have not altered our fundamental view. The market has plunged 12% in four weeks, but remains 60% higher than in March 2009. The pull-back has been consistent with sell-offs that occurred in recoveries following bottoms in 1974, 1982, 1987, 1990 and 2002. The correction has been orderly in that sector returns have been exactly in-line with beta-adjusted expected performance.”

They expect a mid-year rally to 1300 and then a minor correction to end the year at 1250,

“We expect the S&P 500 to rise to 1300 by mid-year (+21%), before ending 2010 at 1250 (+17%).”

Related: Goldman Sachs Group, Inc. (Public, NYSE:GS)

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