Does anybody happen to have Abby's phone number handy?
Ha!
BN 9/18 Goldman's Cohen Recommends Computer, Oil and Bank Shares ;-)
Goldman's Cohen Recommends Computer, Oil and Bank Shares
New York, Sept. 18 (Bloomberg) -- Goldman Sachs & Co.
investment strategist Abby Joseph Cohen is still bullish on U.S.
stocks even after they've been pummeled for two months. She
recommends bank, oil and computer shares such as Dell Computer
Corp.
Cohen, one of the market's most most-influential analysts,
repeated her forecast that the U.S. economy won't be dragged into
recession in 1998 or 1999 by economic turmoil in Latin America
and Asia. In a conference call with clients, she said the 14
percent decline in the benchmark Standard & Poor's 500 Index
since July 17 was unwarranted.
''At current stock prices, equities are implying a recession
that we do not think will occur,'' Cohen said. ''Trouble in the
global economies is nothing new. We are concerned about recent
developments, but we think U.S. investors have overreacted.''
Cohen has been one of the most bullish -- and accurate --
stock market analysts, but she was caught off guard by the recent
declines. Her public comments throughout have been upbeat.
Cohen pointed out that economic problems in Japan, the
world's second largest economy, have been a staple of the 1990s.
She repeated her view that the U.S. economy is a ''supertanker''
that can weather global storms. ''We think that analogy still
holds.''
She said Russia, in the midst of an economic crisis,
accounts for just 0.7 percent of U.S. foreign trade. Brazil,
which economists believe may also fall into recession, buys less
than 2 percent of U.S. exports.
Cohen recommended retailers Gap Inc. and Federated
Department Stores, banks Citicorp. and Chase Manhattan Corp.,
credit-card issuer Providian Financial Corp. and computer-related
bellwethers Intel Corp., Microsoft Corp. and Dell Computer Corp.
--Philip Boroff in the New York newsroom (212) 318-2602 /ag
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