S&p 500 To Hit 10,000 By Year End, Goldman Says

[Deckard]

http://www.bloomberg.com/apps/news?pid=206...id=alcaYpBt0PvY

July 20 (Bloomberg) -- Goldman Sachs Group Inc. boosted its forecast for the Standard & Poor 500 Index, saying improving earnings will spur the steepest second-half rally since 1982.

The benchmark index for U.S. stocks will end the year at 1,060, 15 percent above its level on June 30 and an increase from David Kostin’s prior projection of 940. The chief U.S. investment strategist at New York-based Goldman Sachs also lifted his 2009 and 2010 earnings per share estimates for S&P 500 companies to $52 and $75, which are 30 percent and 19 percent higher than his prior estimates, respectively.

“Improvement in ex-financial earnings per share, stabilization in profit margins and higher forward EPS guidance all point to a rising market through 2009,†Kostin wrote in a report today.

Quick, qucik, pile them in !!!

[Number79]

http://www.bloomberg.com/apps/news?pid=206...id=alcaYpBt0PvY

Quick, qucik, pile them in !!!

thats made my mind up, couple of days up then down she goes.

[R K]

Did they mention $200-300 oil again or not?

[mbga9pgf]

thats made my mind up, couple of days up then down she goes.

Yep, me too. Ramp, ramp, ramp, then short like a b*stard.

Anyone with such a sway would be doing the same. Why would they not be talking the market up if they werent heavily invested?

[Deckard]

thats made my mind up, couple of days up then down she goes.

Memories of this ?

http://www.marketwatch.com/story/goldman-s...00-a-barrel-oil

Edit: aaah, RK beat me to it ...

Edited July 20, 2009 by VoteWithYourFeet

[Timm]

Ramping; get the little people to put their money in, then down it goes.

Exactly the same as is happening in the housing market.

[Number79]

Ramping; get the little people to put their money in, then down it goes.

Exactly the same as is happening in the housing market.

they've got to double bluff sometime though haven't they? people can't be that stupid all of the time, surely?

[Timm]

they've got to double bluff sometime though haven't they? people can't be that stupid all of the time, surely?

History says they are.

[anonguest]

History says they are.

Americans are the thickest of them too!

I have known/met/talked to a number of former aspiring daytraders over the years, who now live 'normal' working lives but still obssess over the stockmarket and watch the business news cable infotainment channels.

After a decade plus of this endless being ripped off by the 'smart money' and perpetually hanging on every TV pundits tip, they still dont seem to get it - that its a rigged game.

Whenever I try to explain that, if someone is on TV telling them (and 10 million others!) about the latest hot investment, they just dont grasp that the info is already priced into the markets. Worse still, they REALLY believe that the bloke on TV is 100% kosher and has no vested interest.

It must be an American thing, maybe they lack a cynicism gene like we Brits do?

Edited July 20, 2009 by anonguest

[MOP]

Americans are the thickest of them too!

I have known/met/talked to a number of former aspiring daytraders over the years, who now live 'normal' working lives but still obssess over the stockmarket and watch the business news cable infotainment channels.

After a decade plus of this endless being ripped off by the 'smart money' and perpetually hanging on every TV pundits tip, they still dont seem to get it - that its a rigged game.

Whenever I try to explain that, if someone is on TV telling them (and 10 million others!) about the latest hot investment, they just dont grasp that the info is already priced into the markets. Worse still, they REALLY believe that the bloke on TV is 100% kosher and has no vested interest.

It must be an American thing, maybe they lack a cynicism gene like we Brits do?

Why does the FTSE track the DOW then?

[CokeSnortingTory]

It is fascinating how far stock markets are diverging from the real economy due to derivatives, electronic trades etc.

As John Michael Greer has pointed out, it is perfectly possible to project a scenario where markets are hitting records while people are starving in the street outside.

The S&P is moving firmly into the entertainment/gaming sector.

[MOP]

Not another one FFS!

Goldman Executive Named as Obama Adviser

By BLOOMBERG NEWS

Published: July 18, 2009

President Obama said Friday he would nominate Robert Hormats, a vice chairman of Goldman Sachs International, to a top economic position at the State Department. Mr. Hormats, 66, will be under secretary of state for economic, energy and agricultural affairs. He was deputy trade representative from 1979 through 1981 and held other posts at the State Department throughout his career. Hillary Rodham Clinton, the secretary of state, said in a speech on Wednesday that she hoped to make economic policy and trade a larger part of United States diplomacy.

http://www.nytimes.com/glogin?URI=http://w...3Q5B1n6EQ7DJdZX

[anonguest]

Why does the FTSE track the DOW then?

I should have clarified further. Those UK stockmarket 'obssessives' that I know, seem to have largely wised up - whereas the Yank accquaintances I know still seem convinced that the equity markets are the easy road to riches.

The UK ones have worked out that, over the last decade, they would have been richer and better off (all in all respects) if they had just stuck to the life they had before becoming stockmarket addicts in the late 90's.

Edited July 20, 2009 by anonguest

[Guest DissipatedYouthIsValuable]

Schloop schloop.

[Agentimmo]

Suck them in , GS.

They don't term them "suckers" for nothing, mes amis

If GS are saying now is the time to invest in the US market, then I'd be doing the opposite.

[Number79]

Why does the FTSE track the DOW then?

the same reason our troops follow theirs

[Cogs]

It must be an American thing, maybe they lack a cynicism gene like we Brits do?

I've noticed this as well, I think its a cultural thing like the guns and Baby Jesus.

This is what decent, God-fearing American men do. Earn your money, buy equities, wave a flag around.

It goes back a long way; Weber wrote a book about it that is quite enlightening.

http://en.wikipedia.org/wiki/The_Protestan...t_of_Capitalism

The TV thing is just what happens when an attitude becomes mainstream.

I always thought it was strange that it became acceptable here to brag about financial deals done re: housing, but other forms of investment were still rather shameful to mention in polite company. Still do.

Edited July 20, 2009 by Cogs

[interestrateripoff]

It is fascinating how far stock markets are diverging from the real economy due to derivatives, electronic trades etc.

As John Michael Greer has pointed out, it is perfectly possible to project a scenario where markets are hitting records while people are starving in the street outside.

The S&P is moving firmly into the entertainment/gaming sector.

Well the bankers wouldn't care about starving people, just as long as they pay off the loans.

Stock markets are fast a boom area, I wonder how much of it is down to pension funds having no where else to put cash apart from stocks.

At some point it will go pop, I wonder if Goldman have realised this which is why they are saying it's going to go up. Obviously the plus point it it will drag in the gullible and push stocks even higher.

[CokeSnortingTory]

Well the bankers wouldn't care about starving people, just as long as they pay off the loans.

Stock markets are fast a boom area, I wonder how much of it is down to pension funds having no where else to put cash apart from stocks.

At some point it will go pop, I wonder if Goldman have realised this which is why they are saying it's going to go up. Obviously the plus point it it will drag in the gullible and push stocks even higher.

I don't think you can look at stock markets rationally anymore - they are obviously being gamed, and of course overwhelmingly by Goldmans.

The electronic trading is (not accidentally) fairly opaque, but I think that it is multiple electronic trades that are creating the volume, with puts and calls being optimised against the herd.

[mikthe20]

The S&P is moving firmly into the entertainment/gaming sector.

+1

I've been looking at shares more recently and also watching Bloomberg (start new job after the Summer). It certainly comes across as entertainment and biased - lots of excitement when stocks go up. The fundamentals of the economy and valuation on actual company performance seems to play no part any more (at least over short term, I can't see how fundamentals won't impact eventually). Certainly also rigged too. Stocks are going up not due to their performance but due to sentiment and the market being gamed. I'd rather not play.

[lowrentyieldmakessense(honest!)]

It is fascinating how far stock markets are diverging from the real economy due to derivatives, electronic trades etc.

As John Michael Greer has pointed out, it is perfectly possible to project a scenario where markets are hitting records while people are starving in the street outside.

The S&P is moving firmly into the entertainment/gaming sector.

yep

[Guest Daddy Bear]

Firstly they are saying S&P will hit 1000 not 10,000.

However I do believe the S&P will hit 10,000 within 5 years.

The stockmarket is not behaving irrationally.

As Lowyieldrentmakessense....... put it check out this graph

[Executive Sadman]

If this were to happen, money would flood into commodities again, which would kickstart inflation, raise rates, and we would be back to square one.

Value cannot be restored until wages go somewhere.

[lowrentyieldmakessense(honest!)]

If this were to happen, money would flood into commodities again, which would kickstart inflation, raise rates, and we would be back to square one.

reminds me of this quote

1) Dramatically shrinking economy, leading to

2) Soaring defaults, leading to

3) Massive bank losses, leading to

4) Severe contraction of lending, leading to

5) Further shrinking of economic activity, leading to

6) Collapsing tax receipts, leading to

7) Exponentially increasing budget deficit, leading to

8) Higher taxes, leading to

9) Further horrendous contraction of economic activity, leading to

10) Huge political pressure for easier credit and bank bailouts, leading to

11) Further dramatic expansion of the money supply, leading to

12) Runaway inflation and currency depreciation, leading to

13) Skyrocketing prices and long term interest rates, leading straight back to 1) in a vicious circle of biblical proportions

This is the witches' brew. Are you prepared for the consequences?

[Guest Daddy Bear]

1) Dramatically shrinking economy, leading to

2) Soaring defaults, leading to

3) Massive bank losses, leading to

4) Severe contraction of lending, leading to

5) Further shrinking of economic activity, leading to

6) Collapsing tax receipts, leading to

7) Exponentially increasing budget deficit, leading to

8) Higher taxes, leading to

9) Further horrendous contraction of economic activity, leading to

10) Huge political pressure for easier credit and bank bailouts, leading to

11) Further dramatic expansion of the money supply, leading to

12) Runaway inflation and currency depreciation, leading to

13) Skyrocketing prices and long term interest rates, leading straight back to 1) in a vicious circle of biblical proportions

This is the witches' brew. Are you prepared for the consequences?

Did I write that?