You don’t have to like a person to respect them.  The same is true for companies.  I don’t like Goldman Sachs, believing they have the same ethical blind spot of most stockbrokers, only worse.  Nonetheless, I do respect their research capabilities.

I just finished studying their expectations for the second half of this year.  In no particular order, here are some of the more interesting points:

1.  They have reduced their year-end S&P forecast from 1500 to 1450.  Still, that is way above the current level of 1325.  I agree the market should be up at year-end but struggle to believe it will be a 9.4% increase.
2.  The dollar will continue to lose value.  Amen!
3.  They don’t expect the rate unemployment to drop below the current level of 9.2% this year and 8.8% next year.  I pray they’re wrong!
4.  “U.S. bond valuations remain unattractive.”  Couldn’t have said that better myself.
5.  Oil will reach $115 by year-end 2011 and $127 by year-end 2012.  And, we’ll still be dependent on Arab oil, if not more so.