Why Goldman's Kostin Is So Bullish on U.S. Stocks

The video discusses the outlook for the equity market, projecting higher values for the S&P 500 in the coming years. It highlights the significant growth in the U.S. economy, corporate sales, and earnings post-pandemic, emphasizing the recovery in margins. The discussion also covers the limited attractiveness of other asset classes, leading to increased investment in equities. The video concludes with an analysis of interest rates and their impact on equity valuation, suggesting that equities remain reasonably valued.

What is the projected market value for the equity market in 2022?

• 5100

• 4900

• 4700

• 4500

Which factor is highlighted as a reason for the remarkable recovery in margins?

• Operating leverage

• Reduction in taxes

• Increase in sales volume

• Decrease in operating costs

Why are equities considered the preferred investment option?

• Higher interest rates

• Lack of attractive alternatives

• Government incentives

• Lower risk

What is the expected 10-year U.S. Treasury yield by the end of the year?

• 1.8%

• 1.4%

• 1.6%

• 1.2%

How are equities valued in the context of current interest rates?

• Highly volatile

• Reasonably valued

• Undervalued

• Overvalued