Goldman Sachs’ 3 Stock Picks With Over 50% Upside Potential

Goldman Sachs’ 3 Stock Picks With Over 50% Upside Potential

We’ve seen a strong bull run in the stock market this year, with the S&P 500 and Nasdaq both gaining more than 20%. The gains have investors asking: Can the markets keep this up into next year?

Looking at the situation for Goldman Sachs, chief US stock strategist David Kostin writes, “Counter to the intuition of many investors, the stellar YTD return is not a good reason in itself to expect a weak return in 2022.”

Kostin reminds investors that one-year bull runs of 20% or more tend to be followed by another year of above-average market returns. Looking ahead to next year, Kostin sees 9% annual returns in the S&P 500, which would put the index at 5,100 by the end of 2022. Taking dividends into account, investors can expect a 10% return from a well-rounded portfolio, in the Goldman view.