“Everyone has a view on the stock market,” Goldman Sachs Group Inc (NYSE:GS) notes in a recent investment letter that says stocks are trading around fair value and will likely rise 4 percent next year. Yellen’s letter notes stretched valuation of small-cap stocks The letter notes that last week, Fed Chair Yellen described the “stretched” valuation of small-caps while president Obama said markets should decide valuations. Obama previous equity valuation comment, the report notes, led to a significant market rally. On March 3, 2009, with the S&P 500 trading at 696, Obama said ”what you’re now seeing is profit and earnings ratios…
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