Earlier this week, I was part of a panel discussion on Money with Melissa Francis that aired on the Fox Business Network and addressed the direction of the S&P 500 and where it will end up by year-end. For extra fun, we also were asked where we thought the market would be during the coming 12 months. Driving the conversation was a recent note published by Goldman Sachs (GS) that called for the S&P 500 to rally to 2,050 by year-end — a 2.8% move higher from last night???s close. Goldman Sachs??? chief U.S. strategist, David Kostin, went on to share his view that the S&P 500 could hit 2,150 in the coming 12 months — a 7.8% move higher.
As I shared with the panel, I would love, love, love if the Goldman call about the market turns out to be on the money — pun intended. When I strap on my investor cap, however, I have to question how likely those moves are, particularly the longer-term one.
In other words, what are some of the driving assumptions, and are they valid, as well as achievable?
Read more about predictions for the 2015 market at Eagle Daily Investor.