Submitted by Mark Hanna
Courtesy of MarketMontage. View original post here.
Interesting interview here with Goldman’s Chief US Equity Strategist David Kostin – despite a market that refuses to relent he has quite a bearish bent on both the economy and the markets, calling for a year end target of ….S&P 1250. This really stands out as most Wall Street strategists tend to bend to the rose colored glasses side.
He cites 3 main trends, the first two more economic focused but the last pointing to earnings which I think will be the key. Earnings growth has slowed substantially and 2012 forecasts are extremely back end loaded, meaning to reach growth estimates there is going to have to be a big reacceleration in latter 2012. This during a time of political uncertainty and more important policy uncertainty as massive U.S. tax breaks come back into focus. Analysts who are bottom lining estimates must be counting on a Chinese economy that returns to burning and Europe coming out of “flat to recession”….
10 minute video – email readers will need to come to site to view
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