Home » Markets » Goldman strategists warn S&P could drop another 11% if recession hits
Goldman strategists warn S&P could drop another 11% if recession hits
Market expert warns to ‘watch out’ for inflation through 2024
Research Affiliates founder and Chairman Rob Arnott gives his market outlook amid 40-year high inflation.
The S&P 500 has gotten crushed in a widespread sell-off this month, and the benchmark index is likely to tumble even lower if the economy falls into a recession, according to Goldman Sachs analysts.
In a recent analyst note, Goldman Sachs lowered its year-end price projection for the S&P for the third consecutive time to 4,300 – which is actually a potential 8% upside to current levels, though down 10% from the start of the year. Goldman initially forecast that the S&P would close out the year at 5,100.
INFLATION SOARS 8.3% IN APRIL, HOVERING NEAR 40-YEAR HIGH
But the outlook is much bleaker if the economy is dragged into a recession this year: Goldman projected the S&P would fall close to 11% from the benchmark's current level, finishing the year around 3,600. That would mark a steep, 25% decline from the beginning of the year.