U.S. stocks wonât rally until Congress approves President Barack Obamaâs economic stimulus plan and the Treasury resolves how to use its remaining financial- rescue funds, according to Goldman Sachs Group Inc.
The Standard & Poorâs 500 Index will probably âretest,â or fall toward or below, the 11-year low of 752.44 it sank to in November, strategist David Kostin wrote in a report today. Still, the benchmark index for U.S. stocks will end this year at 1,100, a 30 percent surge from yesterdayâs close, he said.
The yearlong recession and dwindling credit forced consumers to scale back spending and companies to cut profit forecasts. To revive growth, the government set up the Troubled Asset Relief Program to help banks, and the House this week passed a more than $800 billion stimulus package. The Senate hasnât voted yet.
âPassage of a stimulus plan and resolution regarding the remaining TARP capital are critical milestones that must be passed for the S&P 500 to trade higher,â wrote Kostin, Goldman Sachsâs U.S. investment strategist.
The S&P 500 last year tumbled 38 percent, the most since the Great Depression, after the collapse of Lehman Brothers Holdings Inc. froze credit markets and more than $1 trillion in losses at financial firms eroded profits. Since sinking to 752.44 on Nov. 20, the benchmark has gained 11 percent to 835.55.
http://www.bloomberg.com/apps/news?pid=20601087&sid=aVZz0qgPUpkQ&refer=home
Last time we had a call from GS market rallied. I suppose this time, too.
The Standard & Poorâs 500 Index will probably âretest,â or fall toward or below, the 11-year low of 752.44 it sank to in November, strategist David Kostin wrote in a report today. Still, the benchmark index for U.S. stocks will end this year at 1,100, a 30 percent surge from yesterdayâs close, he said.
The yearlong recession and dwindling credit forced consumers to scale back spending and companies to cut profit forecasts. To revive growth, the government set up the Troubled Asset Relief Program to help banks, and the House this week passed a more than $800 billion stimulus package. The Senate hasnât voted yet.
âPassage of a stimulus plan and resolution regarding the remaining TARP capital are critical milestones that must be passed for the S&P 500 to trade higher,â wrote Kostin, Goldman Sachsâs U.S. investment strategist.
The S&P 500 last year tumbled 38 percent, the most since the Great Depression, after the collapse of Lehman Brothers Holdings Inc. froze credit markets and more than $1 trillion in losses at financial firms eroded profits. Since sinking to 752.44 on Nov. 20, the benchmark has gained 11 percent to 835.55.
http://www.bloomberg.com/apps/news?pid=20601087&sid=aVZz0qgPUpkQ&refer=home
Last time we had a call from GS market rallied. I suppose this time, too.
