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Why Goldman Sachs thinks the Bull Market will continue



The World Stock Markets have nosedive over the past two weeks and has sparked concerns among many investors that a long-feared bear market might finally have begun.

 The S&P 500 index is 7% below the all-time high. Goldman,  says the firm is confident that the bull market remains intact even despite the recent sell-off across the global markets.

 5 Reasons Goldman Is now Bullish:


  •  S&P 500 EPS is predicted to rise to 21% year-over-year in the third quarter.
  •  Economic expansion is still in a mid-cycle.
  •  Corporate return on equity is rising and at a high for this bull market.
  •  Only 37% chance of a recession in the next 3 years according to Goldman's Economists
  •  Return on Equity is rising 


Concern For Investors

A big concern for the bears of the investment world this year has been stock valuations that seem to be stretched. Goldman counters that rapid earnings growth has fueled only minor increases in stock prices this year.

As an example of strong business fundamentals, Goldman cites the recent trend of trailing 4 quarter ROE for the S&P 500 as a whole. It reached a gobsmacking 17.5% in the second quarter, up by 85 basis points from the first half.

Despite all the positives, Goldman has warned about headwinds that will limit stock price gains, including rising interest rates and tariffs.

www.ecocropsinternational.com
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