Goldman Strategists Dismiss ‘Earnings Bubble’ Fears, See S&P 500 at 8,700

The pushback against bubble framing rests on the breadth of profit growth rather than its absolute level, which matters for how the AI trade gets judged: if earnings are genuinely broadening, the rally is less dependent on a handful of names. The call's soft spot is its own forecast of gradual deceleration, since the argument for elevated index levels weakens if that slowdown arrives faster than described. Whether profit growth holds near recent records, and whether it stays broad, is the open question.