Goldman Sachs' Kostin on US Earnings, Tariffs, Mid-Cap Stocks

The video discusses the potential 11% upside for the S&P 500, driven by earnings growth in 2025 and 2026. It highlights the impact of a strong dollar on earnings surprises and the challenges posed by high bond yields and inflation. The discussion also covers risks from potential tariffs and revenue exposure to China, particularly for mega-cap companies. The video suggests focusing on midcap stocks for better risk-reward opportunities, given their lower multiples and similar growth rates compared to large-cap stocks.

What investment strategy is suggested for portfolio managers in light of potential tariffs?

How do midcap stocks compare to large-cap stocks in terms of valuation and growth potential?

What factors could lead to increased interest from US investors in reallocating to China?