Goldman Sachs, despite Monday's rout, still believes S&P 500 can add another 9% by year-end

Goldman strategist David Kostin acknowledges the U.S.-China trade risk but says conditions are fundamentally 'still pretty much in line.'

below 2% and a stable economy, he said, "The general thrust of what's taking place fundamentally is still pretty much in line."that much of the damage in the stock market, measured by the roughly 6% decline in the S&P 500 from last month's all-time highs, has been multiple compression.

"The start of the year, the market was trading around 14 times forward earnings, peaked last month at 18 around times forward earnings," he noted. "Almost all, 95%, of the return of the market this year was driven by valuation expansion as opposed to something more fundamental.""I would say to clients it's difficult to model President

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