What is Dear Abby saying?
<<Abby Joseph Cohen, one of Wall Street's most respected strategists, sounded a bullish note. ''We expect little
impact (from the developments) on U.S. economic growth, corporate profitability and cash flow, suggesting that
values have notably improved in recent weeks,'' she said.
''Importantly, we do not expect global recession this year or next,'' she said in a report issued on Tuesday.
Cohen has hung on to her stock market targets despite the volatility this year. She expects the Dow to sail easily
through 9300 by the end of 1998, and the Standard & Poor's 500 Index likewise to meet 1150.
Going a step further, she said investors should put more money into stocks. She urged that 72 percent of assets in a
balanced portfolio be invested in stocks, up from 65 percent. The five percent that she had previously
recommended in cash should now be switched into stocks, and investors should cut back investments in
commodities to three from five percent.
It was the first time Cohen has changed her numbers since October 28, 1997 -- a session when the Dow bounced up
337 points a day after plunging 554 points. Many credited Cohen, as well as a massive stock buyback by
International Business Machines Corp. (IBM - news) for the turnaround.>>
[end excerpt]
Goldman Sachs' impending IPO wouldn't have anything to do with her comments, would they? No "global recession"? What does she think is happening to most of the people of this world? |
