Bulls Dismiss Earnings Bubble Concerns as US Stocks Remain on Uptrend
Goldman Sachs and Deutsche Bank are dismissing concerns about an earnings bubble in the US stock market, predicting continued double-digit growth for corporate profits.
In a recent report, Goldman Sachs' chief US equity strategist Ben Snider argued that market concerns about an 'earnings bubble' are overblown. He stated that as long as US corporate earnings continue to post double-digit growth, supported by investments in artificial intelligence and the overall resilience of the US economy, the S&P 500 is expected to remain on an upward trajectory through year-end and into next year.
Deutsche Bank also reaffirmed its year-end target of 8,000 points for the S&P 500 index. The bank expects US corporate earnings to grow by approximately 30% year over year in the third quarter, matching the strong performance of the second quarter.