Keep this on ice, as it won't be needed this year.
The divinely-anointed guardians of capitalism think you shouldn’t get greedy, because you’ll be lucky to just hold on to those gains you’ve enjoyed this year so far.
That’s Goldman Sachs Group Inc.’s view on the path for U.S. stocks the rest of the year. In a note to clients Friday, the bank said high valuations, negligible earnings growth, outflows from domestic equity funds and moderate economic growth support the bank’s thesis that the S&P 500 will end the year at 2100, 0.2% above its level of 2096 midday Monday….
“Mean reversion is a powerful force,” wrote David Kostin, Goldman chief U.S. equity strategist. He highlights that the large-cap S&P index witnessed a compound annual price return of 18% during the past three years and 13% over the last five years, well above the long-term annual average of 5%.
Goldman Says ‘Flat Is the New Up’ for Stocks [WSJ MoneyBeat blog]