Tag #Stock Valuations

How does Goldman Sachs account for the high valuations of the US stock market in its 2025 outlook?

The recommendation to favor US equities stems from Goldman's projection of sustained US earnings growth outpacing other developed markets, particularly Europe, in 2025. This advantage, coupled with the argument that current valuations are not a reliable indicator of near-term market performance, underpins their portfolio strategy. The high valuation of the S&P 500 (P/E ratio of 27.49) is acknowledged but downplayed as a short-term timing factor.