The market's surprising rally has lifted the S & P 500 to Goldman Sachs' year-end target before the first-quarter is even over, so the firm is giving clients various scenarios that could happen from here.
If their target ends up being correct and stocks pull back, Goldman recommended clients get long its basket of defensive stocks.
The S & P 500 is coming off its best week since December, bringing it to 5,234.18.
Catch-down scenario: The S & P 500 falls to 4,500, or down 14% from here, as sales growth estimates prove to be too optimistic, especially for the Magnificent 7 Stocks.
"Mega-cap exceptionalism" scenario: The S & P 500 finishes the year at 6,000, or up another 15% from here, where expectations for stocks like Nvidia prove correct and investors take the S & P 500 to 23 price-earnings ratio.
Persons:
Goldman Sachs, Goldman, David Kostin, Kostin
Organizations:
CNBC Pro, Wall, Nvidia
Locations:
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