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3/11, 12:43 PM (Source: TeleTrader)
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Goldman Sachs predicts S&P 500 will drop 15%

The S&P 500 will drop 15% on a quarterly basis from its current level and 28% compared to highs in the index, Goldman Sachs said in a note released on Wednesday. The bank added that it now expects the S&P 500 bull market to end after 13 years of growth.

Goldman said that it revised its S&P 500 earnings per share (EPS) estimate to $157, compared to $165 previously predicted. According to the statement, the biggest reason for the downward estimate are the crude oil price drop and interest rate decisions that will have a negative impact on earnings of firms in the energy and financial sectors. Furthermore, Goldman expects business activity in other sectors also to decline in line with guidance updates released by a number of companies recently.

The S&P 500 declined 10.79% since the beginning of the year, but remains 150.6% higher over the past 10 years.

Breaking the News / VP