An article on cnbc summarizes a call by GS which states that they believe a pullback may be in store later in the year.
In fact, they believe investors are reaching "the point of maximum optimism" that will lead later in the year to a pullback.Despite a rally that has sent the S&P 500 up a gaudy 5 percent in just the first seven weeks or so of trading, Goldman is sticking to its fairly pessimistic call for the full year. The firm believes the large-cap index will gain about another 2 percent before hitting a wall and fall 4 percent from there to finish 2017 at 2,300, or about 2 percent below its current level.
Investors have grown too confident that tax cuts and other initiatives from President Donald Trump's administration will have a major impact on business, Goldman told clients this week. Once investors realize that policy changes won't be felt quickly, the strategists said, markets will have to adjust.
Do you guys agree with them? How much further is this rally going to continue? Are we rallying on hope alone?
