Getting Close to a New High

The S&P 500 is in record territory again. The index has been as high as 3,387.59 this morning. That’s higher than the all-time high close. This is the third day we’ve been in record territory but the other two times, we failed to close at a new high.

On our Buy List Ansys (ANSS), ICE (ICE), Trex (TREX) and Stepan (SCL) are all at new 52-week highs today. Ross Stores (ROST) is also strong this morning. The deep-discounter is due to report later this week.

This morning, Goldman Sachs raised its target for the S&P 500 from 3,000 to 3,600. That’s a big increase and Goldman isn’t alone. A few other Wall Street strategists have also bumped up their forecasts.

Goldman’s David Kostin wrote, “Looking forward, a falling equity risk premium will outweigh a rise in bond yields, and combined with our above-consensus EPS forecast, will lift the S&P 500 Index to 3,600 by year-end.” That’s a fancy way of saying that investors are no longer afraid of the market.

Posted by on August 17th, 2020 at 11:54 am


The information in this blog post represents my own opinions and does not contain a recommendation for any particular security or investment. I or my affiliates may hold positions or other interests in securities mentioned in the Blog, please see my Disclaimer page for my full disclaimer.