How Goldman Sees The S&P In 2017: First Rise, Then Fall

About 3 months ago, Goldman’s year end S&P500 target for 2016, 2017 and 2018 were 2,100; 2,200 and 2,300 respectively. Then, as readers are well aware, everything changed with the Trump election which unleashed a surge in US equities and the dollar, on expectations of reflation and fiscal stimulus. That prompted Goldman to boost its S&P price target by roughly 200 points across the board, as it merely tried to keep up with the price action.
Understandably, there was some confusion, so to address it, overnight Goldman’s chief equity strategist David Kostin released his first “weekly kickstart” report, which summarized Goldman’s latest goalseeked forecasts for the S&P500 as follows: “S&P 500 rose 9.5% for a total return of 12.0% in 2016; We forecast a 5% total return in 2017”
The details:

This post was published at Zero Hedge on Jan 3, 2017.