Goldman's Kostin Sees Three 25 Bps Hikes in Early 2023

The transcript discusses the current market conditions, highlighting higher rates and a weaker dollar. It explores the S&P 500's expected performance, with a potential drop in the first quarter and a recovery later. The discussion includes the Federal Reserve's possible rate hikes and their impact on market optimism. Goldman Sachs predicts specific rate hikes, emphasizing the risks to market valuation and earnings. The transcript concludes with a focus on the market's high valuation and the risk of higher-than-expected rates.

What is the expected trend for the S&P 500 in the first quarter?

• It will rise to 4000

• It will drop to 3000

• It will fall to around 3600

• It will remain stable

What is the market's expectation regarding the Fed's actions?

• The Fed will maintain current rates

• The Fed will reduce rates immediately

• The Fed may stop hiking rates sooner than expected

• The Fed will continue hiking rates indefinitely

How many basis point hikes does Goldman Sachs expect in the early part of next year?

• Three 25 basis point hikes

• Four 25 basis point hikes

• One 50 basis point hike

• Two 25 basis point hikes

What is a significant risk to the market according to the final section?

• Lower-than-expected rates

• Decreasing market valuation

• Higher-than-anticipated rates

• Stable rates

What percentile is the equity market at versus history on an absolute valuation basis?

• 80th percentile

• 90th percentile

• 60th percentile

• 50th percentile