Goldman Lowers S&P 500 Earnings Estimates Until 2024

Goldman Sachs has revised its earnings estimates for the S&P 500, predicting no growth in 2024 due to margin contraction. This suggests stocks may be overvalued unless earnings improve or treasury yields change. JP Morgan notes that peak yields could make equities more attractive, but current valuations remain challenging. The Fed model compares income from stocks and treasuries, highlighting the need for either a rise in treasury prices or a drop in stock prices to make equities appealing.

How does the current earnings growth expectation affect stock valuations according to the text?

What does Goldman Sachs predict about the S&P 500 growth for next year?

What are the implications of a potential recession on earnings per share (EPS) according to the text?

What is the significance of the Fed model mentioned in the discussion?

What challenges do stock valuations face if yields remain high?