Goldman Doublespeak: Stocks to Fall by 10%, Then Race All the Way Back

I can’t remember the last time David Kostin from Goldman Ballsachs was right. It’s almost as if his bosses are throwing hot coffee on him, demanding that he hedge his bearish call with neutrality. Although he’s calling for a 10% drop in stocks in the near term, he believes they will race back, closing out the year at 2,100.

“Although investors appear complacent in the wake of Brexit, a maturing economic cycle with elevated valuations, decelerating buybacks, and growing political uncertainty provide the basis for potential market weakness in the second half,” the team writes. “However, above-trend U.S. GDP growth, a cautious Fed, and an earnings recovery will return the S&P 500 to 2,100 by year-end, extending the flat market of the past two years.”

Useless refuse. No balls.