While Goldman gives the following explicit warning in all of its public research pieces: “Our asset management area, our proprietary trading desks and investing businesses may make investment decisions that are inconsistent with the recommendations or views expressed in this research”, the reality is that in recent months Goldman’s chief equity strategist David Kostin has been getting increasingly “toppish” if not outright bearish on stocks. In his latest report he now openly warns that “the market will rise to 2150 by mid-year but fade after the Fed raises interest rates in September for the first time in nine years.” As a result Goldman’s “year-end forecast is 2100 and its 12-month target equals 2125.”
Which is where the S&P 500 (SPY) closed on Friday. In other words, sell in May and come back until next May.
Here is what else Goldman is telling its buyside clients:
