Goldman Reduces 2008/09 S+P 500 Estimates

On Friday, the research arm of Goldman Sachs reduced their annual 2008 and 2009 profit forecasts for companies making up the U.S.'s S+P 500 stock market index. David Kostin, Goldman's lead portfolio strategist, now expects global losses from writedowns to total $1.6 TRILLION through 2011, more than his prior projection of $1.3 TRILLION.

* 2008 estimate: Reduced by 10% to $65/share

* 2009 estimate: Reduced by 9% to $63/share

* Given the S+P's current level of 930 + GS's updated annual 2008 and 2009 earnings estimates, the S+P 500 is currently trading at 14 times 2008 earnings and 15 times 2009 earnings.

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Data Courtesy: Bloomberg