Goldman Sachs: expects S&P 500 to reach 6,000, bullish on mid-caps on back of rate cuts

David Kostin, chief U.S. equity strategist at Goldman Sachs Group, said U.S. stocks will continue to move higher once the dust settles from the U.S. presidential election.Kostin said he expects the S&P 500 Index to be sitting near 6,000 a year from now. That forecast implies the index is up about 5 per cent from Monday's record closing level of about 5,719 points. The index has risen about 20 per cent this year. However, he said investors may have to deal with some market turbulence in the coming weeks, given the last-minute showdown between U.S. Harris and Trump.Kostin also sees opportunities in mid-cap stocks, noting that mid-cap stocks have a better track record over the long term, with lower valuation multiples and better valuations compared to large- and small-cap stocks. He also noted that mid-cap stocks tend to outperform the broader market in the 3- and 12-month periods following rate cuts.