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Goldman: Market gains done for '15 so buy this

Traders work on the floor of the New York Stock Exchange.
Lucas Jackson | Reuters
Traders work on the floor of the New York Stock Exchange.

The S&P 500 is up under 1 percent for 2015 and that may be all you're going to get.

Goldman Sachs predicts the S&P will be little changed from current levels to the end of the year and even over the next 12 months.

"We expect the S&P 500 will hover near current levels during the next 12 months with dividends providing most of the prospective 3 percent total return,'' wrote David Kostin, chief U.S. equity strategist at Goldman.

One reason for the lack of vitality in the market is the looming rate hike by the Fed this year, which in turn will impact multiple expansion, the main driver of price returns in 2015, according to the investment bank.

"We expect the P/E will contract to 16 times in 2H [second half] 2015 as the Fed hikes rates," the note read. That multiple decrease amounts to a 6 percent drop from the current consensus forward multiple of 17.1 times for the S&P 500.

So far in 2015, U.S. stocks are on pace for their smallest return in the first six months of a year since 1978 when they rose just 0.45 percent.

So where is Goldman telling clients they should turn for returns?