Banks & funds predict stocks will continue to rally, but CEOs are uncertain
Would you bet against Goldman Sachs or Jeff Bezos? Probably not, but what happens when they’re both forecasting completely different outcomes? Last year, Goldman Sachs predicted that the S&P could reach 5,200 by the end of 2024 — a milestone it achieved last week. At the same time, Bezos and many tech leaders are now selling, leaving investors to ponder whether to hold or sell.
- Goldman’s Chief US equity strategist David Kostin believes the S&P 500 could climb another 15% to 6,000 by year-end — but for that to happen, megacap tech stocks would need to keep rising.
- T. Rowe Price’s Tony Wang suggests this is feasible as multiples remain reasonable — and AI businesses continue to be the “most” attractive place for investment opportunities.
But execs themselves aren’t so sure… Tech leaders like Mark Zuckerberg and Peter Thiel have also been selling their companies’ stock — with insider sales reaching the highest volume since Q1 2021. That was right before the market peaked that year, beginning its year-long decline — and today, this could serve as a warning for investors. “If they [tech leaders] think we’re at the top … that’s a rather stark signal to everyone else,” remarked Charles Elson of the University of Delaware (FT). After all, who knows more about the company than insiders?
