Thread: Now who are you gonna believe, Abby or Steve Ballmer????
Sunday September 26, 1:53 pm Eastern Time
Goldman's Cohen sees U.S. stocks as undervalued
WASHINGTON, Sept 26 (Reuters) - Goldman Sachs chief U.S. equity strategist Abby Cohen said on Sunday the U.S. stock market was still undervalued and the prices of large technology companies offered ''very attractive'' value.
Speaking at a World Bank seminar on the fringes of the annual International Monetary Fund meetings, the U.S. stock market's most consistently bullish analyst said the prospects for stock returns were good although not as good as in the early 1990s.
''Today we think 'stocks' are only modestly undervalued. that suggests to us that stock prices can continue to rise but they will do so in a way that is more commensurate with the actual improvements in our economy, in our corporate profits and the outlook for inflation and interest rates,'' she said.
Returns on stocks would be ''good, but not necessarily as fabulous as earlier in the decade.''
Addressing the technology sector, which last week saw a large sell-off, she said that major companies were good value for investors.
''We think mainline technology stocks are looking very attractive, many of them have enormous earnings growth, very high returns on equity and very high profit margins,'' she said.
She declined to discuss her outlook on Internet company stocks.
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