Connect with us

Hi, what are you looking for?


S&P 500 will keep within this range in 2023: David Kostin

So far, the S&P 500 index has failed to kick off a new bull market on fears of a looming recession.

Still, David Kostin – the Chief U.S. Equity Strategist at Goldman Sachs continues to believe in the Federal Reserve and its ability to orchestrate a soft landing in 2023.

Kostin’s outlook for S&P 500

Kostin expects a 1.0% growth in the U.S. GDP next year but that, he added, won’t be sufficient to unlock a meaningful upside in the benchmark index. Explaining why on CNBC’s “Squawk on the Street”, the Strategist said:

GDP growth [will] lead to modest sales growth but the idea of margins compressing would suggest that there’s no much earnings growth, which is why the market will likely be flat in the coming year.

He, therefore, recommends that investors prioritise strong fundamentals when investing in equities for 2023.

In particular, Kostin is constructive on “healthcare” and “consumer staples” since that’s what works in times when inflation is high but is coming down.  

What if there’s indeed a recession?

Interestingly, though, the Goldman Sachs’ strategist does not expect the market to make a new low even if the economy ends up in a recession.

Between 3,750 and 4,000 is where he expects the benchmark to linger next year.

If you had a recession, earnings probably drop by 11% next year and that would suggest the market ends in year’s time at 3,750. So, I think 4,000 to 3,750 is the range you’re likely to see near term.

Even in the worst-case scenario, Kostin sees downside only to 3,600 level – just above the October low. In comparison, the S&P 500 index is currently trading at 3,930.

The post S&P 500 will keep within this range in 2023: David Kostin appeared first on Invezz.

Enter Your Information Below To Receive Free Trading Ideas, Latest News And Articles.

    Your information is secure and your privacy is protected. By opting in you agree to receive emails from us. Remember that you can opt-out any time, we hate spam too!

    You May Also Like


    Reprinted from the Future of Freedom Foundation President Biden’s campaign to banish (or maybe outlaw) political paranoia took a wallop last spring. In April,...


    Inflation appears to be on the decline. The Personal Consumption Expenditures Price Index (PCEPI), which is the Federal Reserve’s preferred measure of inflation, grew...

    Editor's Pick

    It’s already a cliché, but technology is rapidly improving. And for many businesses, it’s hard to catch up. However, it’s not just the average...

    Editor's Pick

    At Broadband World Forum 2022, Fibocom launched 5G module FG370 based on MediaTek T830 platform, aiming to empower the deployment of 5G FWA for...

    Disclaimer:, its managers, its employees, and assigns (collectively “The Company”) do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.

    Copyright © 2022 All Rights Reserved.