The S&P 500 now trades at 22.5 times projected earnings, according to Refinitiv, the most expensive valuation since October 2000 during the bursting of the dot-com bubble. Even Goldman Sachs, which is bullish on stocks in the long run, is warning clients to brace for a bumpy ride this summer. The investment bank expects the S&P 500 will plunge back to 2,400 over the next three months, representing a potential decline of 18%. Already, more than 40 S&P 500 stocks have suspended or slashed dividends this year, Goldman Sachs said, adding that dividends are expected to shrink by 23% this year. If Biden wins and Democrats take control of the US Senate, Trump's corporate tax cuts could be unraveled.

Source: CNN May 12, 2020 18:22 UTC