Goldman Sachs equity strategists highlighted the impressive performance of the S&P 500 index in 2023, which yielded a remarkable 26% return, surpassing the historical average of 12% since 1986.
The Information Technology and Communication Services sectors led the surge, delivering impressive returns of 58% and 56%, respectively.
Analysts also noted that stocks outpaced the 10-year US Treasury note by 23 percentage points, while Bitcoin outperformed the leading Info Tech sector, generating a 153% return. Interestingly, both assets achieved similar risk-adjusted returns, analysts noted.
Looking ahead to 2024, analysts anticipate a scenario of decelerating inflation and Federal Reserve easing, factors that are expected to maintain low real yields and support a P/E multiple greater than 19x.
“We forecast that in 2024 S&P 500 EPS will grow by 5% to $237 and the index will reach 5100 by year-end,” the strategists wrote.