Goldman's Kostin Sees S&P 500 Rising to 4,300 by Year-End 2021

The video discusses the projected path to SPX 4600 by the end of 2022, driven by an improving economy, growing earnings, and low interest rates. It highlights the performance of major stocks and the broader market, noting significant sales growth among the top five stocks. The economic outlook is positive, with expectations of GDP growth and controlled inflation, supported by the Fed's policy to keep rates low. Earnings are projected to exceed consensus due to a strong economic backdrop, making equities an attractive investment option.

What are the three building blocks mentioned for the SPX index growth?

• Decreasing GDP, stable earnings, high interest rates

• High inflation, increasing unemployment, rising interest rates

• Improving economy, growing earnings, low interest rates

• Stagnant economy, declining earnings, fluctuating interest rates

What is the expected revenue growth for the five major stocks in the coming years?

• 20%

• 5%

• 15%

• 10%

How much revenue growth is expected for the other 495 stocks?

• 6%

• 3%

• 12%

• 9%

What is the consensus expectation for S&P 500 earnings next year?

• $165

• $150

• $185

• $175

What is the expected GDP growth according to the more optimistic forecast?

• 4.5%

• 3.8%

• 6%

• 5%