3 reasons why the stock market still has room to run higher, according to Goldman Sachs

• Goldman Sachs sees the S&P 500 finishing the year at 4,700, about 8% higher from current levels.
• Stocks have slumped about 5% in August after rallying 21% in the first seven months of the year.
• The bank's strategists laid out why the stock market still has room to move higher.

Markets have slumped in August following a 21% surge in the first seven months of the year, but Goldman Sachs still sees reason for bullishness as the odds of recession decline.

The bank forecasts the S&P 500 to finish the year at 4,700, about 8% higher than current levels, and strategists told clients in a Friday note that there's little reason to fret over this month's weak performance.