Head of US equity Strategy at gss Goldman Sachs David Kostin on what will limit US stock upside ahead:
- lingering policy uncertainty (on US-China trade relations, Fed uncertainty)
- negative revisions to 2020 EPS
Kostin says he expects upside to be difficult despite
- GS rates strategists expecting 10 year UST yield to 1.75% by the end of this year
More:
- tailwind to valuations from falling interest rates
- headwinds from weak growth and high uncertainty
- macro model indicates that the S&P 500 currently trades near fair value
