Goldman Sachs Released Its 2023 Forecast For Market

Goldman Sachs issued its forecast for 2023, predicting that the S&P 500 Index will fall about 9% over the next three months before rebounding after the Federal Reserve’s tightening cycle ends in May.

According to Goldman Sachs Research, the S&P 500 Index is expected to provide flat returns and no profit growth in 2023 after falling approximately 17% this year.

The benchmark is expected to decrease approximately 9% over the following three months before recovering when the Federal Reserve‘s tightening cycle concludes in May.

Revenue for S&P 500 companies is expected to expand by 4%, in line with nominal GDP growth, while margins are expected to contract, negating earnings per share growth.

Historically, the ideal moment to purchase equities is when economic growth is slowing but approaching a plateau. However, while the forecast for growth is predicted to improve later this year, this has not yet occurred. According to Goldman Sachs Research strategists:

“Timing is everything. A weak economy that is still deteriorating is very different from an economy that is getting less bad.”

Besides the traditional stock market, the crypto market is also being severely affected. The largest coin by value and market cap right now, Bitcoin (BTC), has suffered heavy losses during this year’s crypto winter. The price of BTC is currently trading at $16,558.

Earlier this month, Goldman Sachs collaborated with index provider MSCI and cryptocurrency data company Coin Metrics to develop a taxonomy of digital assets service.

DISCLAIMER: The Information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.

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