To add to the mix of opinions - Abby Joseph Cohen's Inflation Views
from today's New York Times
Just remember guys, the Fed has to indicate a BIAS towards raising rates BEFORE they actually raise them.
May 16, 1999
INVESTING DIARY
The Queen of the Bulls Still Stays the Course
For followers of Abby Joseph Cohen, investment strategist at Goldman, Sachs, it probably seems like a reflex reaction. Bad news prompts a market selloff. Ms. Cohen, a perennial bull, tells investors not to fret.
It happened again on Friday as the Dow Jones industrial average lost 193.87 points on the news that the Consumer Price Index rose an unexpectedly sharp 0.7 percent last month, fueling inflation fears. Speaking at a Goldman, Sachs conference, Ms. Cohen said the concerns were overdone.
"We don't believe we are on the cusp of an increase in inflation," she said, adding that excess capacity in many industries and stable commodity prices will temper price increases.
The Standard & Poor's 500-stock index is in a trading range of 1,300 to 1,350, and it may get a boost as companies report second-quarter profits, Ms. Cohen said. "The direction of the S&P will be higher," she said.
Ms. Cohen added that she didn't expect a "significant spike" in interest rates. For the year, she said, inflation will be 1.5 percent to 2 percent. (Bloomberg News) |
