Goldman Sachs predicts limited stock upside in 2024 despite market rallies

Goldman Sachs predicts limited upside for stocks in 2024, with the S&P 500 projected to close the year at 4,700, representing a 5% increase from current levels. The firm believes that the current market rally will weigh on future gains, and while it expects a benign outcome for equities, the starting point will limit potential appreciation. Goldman sees the majority of the market's gains concentrated in the second half of the year, with the resolution of election uncertainty and the first Fed rate cut expected to lift US equity prices. The firm also highlights the outperformance of the "Magnificent Seven" tech stocks but cautions that the risk/reward profile may not be attractive given elevated expectations. Overall, Goldman Sachs advises investors to stay invested through 2024, as high-quality stocks and beaten-down cycle plays are expected to perform well.