Goldman Sachs: Very Narrow Consensus Among Clients

After meeting with a lot of their institutional clients, Goldman Sachs Group Inc (NYSE:GS) found a strong, narrow consensus that US economic growth would spring back after a disappointing first quarter, and that the S&P 500 (INDEXSP:.INX), recently past 1920 for the first time, is trading close to fair value. “Almost all clients have the same outlook: 3% economic growth, rising earnings,rising bond yields, and a rising equity market,” write Goldman Sachs analysts David J. Kostin, Stuart Kaiser, Amanda Sneider, and Ben Snider in a May 30 report. “Improving growth, low volatility, and strong equity fundamentals suggest that riskier and more…