The latest forecasts from investment banking giant Goldman Sachs predict the following:
1. GDP growth this year will average only 1.6%, reflecting damage of the government shutdown, but will jump to 2.9% for next year and unemployment will be "only" 6.6% by the end of 2014.
2. Inflation remains tame at 1.8% at the core level through next year.
3. Interest rates will move up sharply from about 2.5% for 10-year Treasuries now to 3.25% next year.
4. The S&P 500 will end this year about where we are now (1,750) but end next year at 1,900.
5. Oil will continue to fall about 10% through next year.
6. Gold and cooper will both fall. Gold is expected to drop from about $1,325/oz to only $1,030, while cooper will drop from $6,600/ton to $6,200.
7. The dollar will appreciate against the Yen but depreciate slightly against the Euro.
8. Tapering of quantitative easing will not begin before March.
Any questions?
1. GDP growth this year will average only 1.6%, reflecting damage of the government shutdown, but will jump to 2.9% for next year and unemployment will be "only" 6.6% by the end of 2014.
2. Inflation remains tame at 1.8% at the core level through next year.
3. Interest rates will move up sharply from about 2.5% for 10-year Treasuries now to 3.25% next year.
4. The S&P 500 will end this year about where we are now (1,750) but end next year at 1,900.
5. Oil will continue to fall about 10% through next year.
6. Gold and cooper will both fall. Gold is expected to drop from about $1,325/oz to only $1,030, while cooper will drop from $6,600/ton to $6,200.
7. The dollar will appreciate against the Yen but depreciate slightly against the Euro.
8. Tapering of quantitative easing will not begin before March.
Any questions?
