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Goldman strategist turns bearish on stocks

Goldman Sachs is turning bearish on the stock market, according to a report.

Business Insider notes that David Kostin, chief U.S. equity strategist at Goldman Sachs, has called for the Standard & Poor’s 500-stock index, a broad measure of the overall market, to close the year at 1,250, despite the persistent rally in the first four months of the year.

That’s 5.5 percent lower than where the S&P 500 is currently.

Kostin gave three major reasons for his bearish view: A stagnating U.S. economy, declining stock valuations and reduced earnings growth for companies.