Goldman Sachs: It is expected that the S & P 500 index will reach 6,000 points, and it is optimistic about mid-cap stocks in the context of interest rate cuts

David Kostin, chief US equity strategist at Goldman Sachs Group, said US stocks would continue to move higher once the dust settles on the US Presidential Election. Kostin said he expected the S & P 500 to be around 6,000 in a year's time. The forecast puts the index up about 5 per cent from Monday's record close of about 5,719. The index has risen about 20 per cent this year. However, he said investors may have to deal with some turbulence in the market in the coming weeks, given that the US Harris-Trump showdown will come to an end at the last minute. Kostin also sees opportunities in mid-cap stocks, noting that they have a long track record of better performance, lower multiples and better valuations than large and small caps. He also pointed out that mid-cap stocks tend to outperform the broader market in the three and 12 months following a rate cut.