November 30, 2015

GOLDMAN: Stocks will go nowhere in 2016

Goldman Sachs is forecasting another lackluster year for the S&P 500.
Year-to-date, the benchmark index has gained about 1.3%.

"We forecast the S&P 500 index will tread water for a second consecutive year in 2016," Goldman's David Kostin wrote in the firm's 2016 stock-market outlook on Tuesday.

"Our year-end 2016 target of 2100 represents a 1% price gain from the current index level (2089), which itself is just 1% above the year-end 2014 level of 2059. Including dividends, we expect the total return in 2016 will equal 3%."

This low-return environment will persist as stock valuations remain relatively high. Kostin sees the price-to-earnings ratio at 16.2 times earnings next year, compared to an estimated 16.6x this year.

Read more at http://www.businessinsider.in/GOLDMAN-Stocks-will-go-nowhere-in-2016/articleshow/49909442.cms

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