STOCKS | Goldman Sachs Sees Bull Market Extending Despite Fed Rate Hikes

According to Wallstreetcn, Goldman Sachs expects the bull market to continue even as the Federal Reserve begins raising rates, with strategists led by Ben Snider saying higher rates are a headwind for equity valuations but corporate earnings remain the most important driver of the stock market. The report said the S&P 500's forward price-to-earnings ratio has fallen from 22 times at the start of the year to 19 times now, while the index remains within 2% of its record high, and that the market has already priced in expectations for more than three rate hikes next year.