Goldman Lowers S&P 500 Earnings Estimates Until 2024

Goldman Sachs has revised its earnings estimates for the S&P 500, predicting no growth in 2024 due to margin contraction. This suggests stocks may be overvalued unless earnings improve or treasury yields change. JP Morgan notes that peak yields could make equities more attractive, but current valuations remain challenging. The Fed model compares income from stocks and treasuries, highlighting the need for either a rise in treasury prices or a drop in stock prices to make equities appealing.

What is the main reason Goldman Sachs revised its earnings estimates for the S&P 500?

• Improved economic outlook

• Increased consumer spending

• Margin contraction

• Higher interest rates

According to Goldman Sachs, what is the expected growth rate for the S&P 500 earnings next year?

• 7%

• 0%

• 3%

• 5%

What does JP Morgan suggest about treasury yields?

• They will continue to rise indefinitely

• They are likely to peak

• They will fall sharply

• They will remain stable

What is the Fed model used to compare?

• Income from commodities versus stocks

• Income from real estate versus stocks

• Income from stocks versus treasuries

• Income from stocks versus bonds

What needs to happen for equities to become attractive again according to the Fed model?

• A decrease in interest rates

• A big pickup in treasury prices or strong earnings

• A significant increase in stock prices

• A decrease in treasury prices