Tuesday March 28, 10:45 am Eastern Time
Goldman's Cohen cuts equity exposure, cites shr gains
NEW YORK, March 28 (Reuters) - Abby Joseph Cohen, chair of the Goldman Sachs'
investment policy committee, said Tuesday stock-prices gains compelled her to trim to 65
percent from 70 percent the equity portion of the firm's balanced portfolios.
Reuters reported the Cohen changes, and her setting a Standard & Poor's 500 March 2001
target of 1,625, ahead of the U.S. market open. Equities markets around the world soured
on the news.
The five percent was added to cash, which previously had no allocation. The asset mix now
stands at 65 percent stocks, five percent cash, 27 percent bonds ans three percent commodities.
In the equities-only model portfolio, Cohen now recommends 85 percent stocks, down from 95 percent, and 15 percent cash,
up from five percent.
In a research note, Cohen said her stock-market sector weightings are unchanged -- she still favors financials, pharmaceuticals
and selected basic-material and energy related stocks. Her views also are unchanged regarding the longevity of the current
economic and corporate profit expansion. |
