Cohen.......Predictions
· The market may be weaker than ever, but Cohen is as bullish as ever. She continues to believe the S&P 500 will hit 1650 over the next 12 months — which would represent an increase of 25%. "Indications that cash is building in portfolios, and that valuations are the most appealing they have been all year, support the forecast of rising stock prices," Cohen says. (Goldman Sachs Research, Nov. 30)
· Cohen says the fundamental picture for stocks remains quite favorable — a message she started broadcasting back in October. While it's true that economic and profit growth have slowed, she believes that both remain above long-term trend rates and appear sustainable. Moreover, inflation fears are waning despite higher energy prices. (Goldman Sachs Research, Nov. 14)
· As for the election, Cohen's take on the next four years is slightly different from that of some of our other gurus. She isn't predicting gridlock, and she doesn't expect the narrow victory for our next president to necessarily hamper his policy initiatives — at least not if that next president is Gov. George W. Bush. "The current Republican-dominated Congress passed legislation calling for significant policy changes, such as large tax cuts, that were prevented only by President Clinton's veto," she says. |
