OT - But nice to read
Goldman's Cohen Sees Dow Average at 9850 by End '99
from Bloomberg News
NEW YORK (Dec. 17) -- Goldman, Sachs & Co. investment strategist Abby Joseph Cohen forecast that the Dow Jones Industrial Average will end next year at 9850 -- a gain of 12 percent from today's level.
Cohen, in her 1999 outlook report to clients, said the Standard & Poor's 500 Index could rise to 1275 by the end of 1999, and companies in the index are likely see their earnings from operations increase 5 to 7 percent.
The U.S. economy is plowing ahead even as growth around the world slows, Cohen said. That assures that U.S. corporate profits, and stock prices, will rise next year, she said.
''The global backdrop in 1999 will continue to offer impediments, but we expect Supertanker America to stay its course of moderate economic and profit growth,'' Cohen said.
Cohen has predicted that the S&P 500 will end this year at 1150 and that the Dow average will finish 1998 at 9300.
She has been among the most accurate and bullish market forecasters in recent years. Rated as Institutional Investor magazine's top portfolio strategist, she was named a partner at Goldman in October.
Some of the risky investments that investors fled during the market slump of August and September -- such as small- and medium- capitalization stocks and corporate bonds -- are good values now, Cohen said. She didn't mention specific stocks, bonds or industry groups.
While those securities are relatively inexpensive, investors may continue to shun them until they gain more confidence that the economic expansion will continue and that profits will keep growing.
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