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U.S. Stocks Don’t Need to Fall on Economic Damage, Goldman Says

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Earnings Really Not As Bad As Expected, Barings' Christopher Smart Says

U.S. stocks may be able to look through a dismal earnings season or two, and the deepest economic contraction in modern history, according to analysis by Goldman Sachs Group Inc.

That’s based on historical analysis that suggests equities price in macroeconomic performance over a two-year horizon. As long as projections are -- as they indeed are now -- for the economy to rebound after the current and coming period of pain, then stocks don’t need to fall, the Wall Street bank concluded.