12.03.2025 10:50
Within the scope of global trade wars, the Trump administration, which imposed additional tariffs on China, Mexico, Canada, and EU countries, has not yet achieved the expected positive results, and negative comments are coming in one after another. Most recently, Goldman Sachs lowered its year-end forecast for the American stock market, which has seen record declines for two consecutive days, from 6,500 points to 6,200 points.
Things are not going as President Donald Trump hoped in the United States. Donald Trump, who wants to revive the American economy by reducing imports and increasing domestic production, decided to impose additional tariffs on China, Mexico, Canada, and EU countries. This decision by Trump was met with retaliation from those countries. While the retaliations caused the dollar index to decline against foreign currencies, Trump's failure to dismiss the prediction that these additional tax policies would lead to increased inflation became a major source of concern. Following the collapse in the American stock markets, Goldman Sachs also painted a grim picture.
GOLDMAN SACHS LOWERS TARGET FORECAST
The world-renowned investment bank Goldman Sachs made a statement that is expected to be widely discussed in the market, highlighting its position as one of the centers where investors are waiting for recommendations in light of recent developments. In the bank's statement, it was reported that the target for the American S&P 500 Index for the end of 2025 has been revised. Accordingly, the financial giant suggested that the U.S. economy might perform worse than expected. The bank lowered its previously announced target from 6,500 points to 6,200 points. This adjustment reflects a decrease in the institution's forward-looking fair price-earnings (P/E) valuation from 21.5 times to 20.6 times, a reduction of 4%.
CAUTIOUS STANCE FOR THE MARKET IS STRENGTHENING
In its assessment, Goldman Sachs stated, "The revision also includes a downward adjustment in earnings per share (EPS) expectations for the stocks that make up the index. The 2024 EPS expectation has been lowered from $268 to $262, and the 2025 expectation has been reduced from $288 to $280." Goldman Sachs's move indicates a more cautious outlook regarding the market's future performance.