The Flinchum File
Thoughtful Economic Analysis and Existential Opinions

Goldman Thoughts

02/27/2016

Some of the latest predictions from the good people in the research department of investment giant Goldman Sachs are:

1.  The S&P 500 will rise to 2,025 over the next three months and 2,100 over the next twelve months, which would be an 8.2% increase!
2.  European stocks will rise even more – up 11.1% over the next twelve months.
3.  Asia will rise 12.1%, with the Japanese Topix rising a stunning 25.7%.
4.  Ten-year Treasuries will rise 110 points.  (I doubt this.)
5.  The dollar will appreciate 12% against the euro and 7.3% against the yen, over the next twelve months.
6.  The pound will only lose 1.4%, suggesting Goldman is not worried about “Brexit.”
7.  The volatility index or VIX is NOT predicting a recession.
8.  Most importantly, oil will rise to $43/bbl over the next three months and $54/bbl over the next twelve months.  This 55.6% increase in oil also explains the 8.2% increase in the S&P 500. This is a big deal!!

I wonder what the other people at Goldman Sachs think?

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