Wall Street strategists expect stock markets to rise and earnings per share to rise. Financial markets are starting 2024 with big losses, despite optimistic forecasts.

Wall Street strategists expect stock markets to rise and earnings per share to rise. Financial markets are starting 2024 with big losses, despite optimistic forecasts.

According to a report from finanzmarktwelt.de, Goldman Sachs predicts a sustained rally in the stock markets. U.S. corporate profits are expected to rise 5% this year, above current forecasts, according to chief strategist David Kostin. This is driven by a strong economy and lower interest rates from the US Federal Reserve. The prospect of an upcoming reporting season could also provide positive impetus. Expectations are high that S&P 500 companies will exceed analysts' forecasts. The strong US economic data and the Fed's successful containment of inflation have led to positive sentiment on the stock markets. The Fed is expected to cut interest rates six times this year, which is also driving stock markets.

According to Goldman Sachs' forecast, the S&P 500 could rise to 5,100 points by the end of 2024, an upgrade from the previous forecast. This optimistic assessment is based on relaxed financial conditions and a profit forecast that may be too conservative. Despite the setback in the first week of January, the outlook for the stock markets remains positive.

The expected increase in US corporate profits and the continued positive sentiment on the stock markets could lead to further price increases. If Goldman Sachs' forecasts come true, this would have a positive impact on the market and the financial industry. Investors could benefit from rising stock prices, while financial institutions could benefit from increased trading volumes and transaction fees. Strengthened financial conditions could also lead to increased investment in businesses and infrastructure.

However, it remains to be seen whether Goldman Sachs' forecasts will materialize. Predicting stock markets accurately is difficult because they depend on a variety of factors. Nevertheless, current developments point to a possible continuation of the rally on the stock markets.