Goldman's Desk Crunches Numbers: What's Next Isn't Encouraging
Source: zerohedge.com
- Goldman's trading desk ran numbers showing US stocks are wildly overvalued compared to earnings.
- Key metric: S&P 500 trades at 21.7x forward earnings, far above the long-term average of 15.8x.
- Warning: This setup points to a sharp market drop ahead if valuations don't correct.
Goldman Sachs' trading desk crunched the numbers on stock valuations and issued a stark warning. They're saying the S&P 500 is priced at levels that scream bubble, based on earnings multiples and historical comparisons. Involved are Goldman's quants and strategists like Peter Oppenheimer. It matters because it signals potential pain for investors holding overpriced equities right now.