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Strategies & Market Trends : VOLTAIRE'S PORCH-MODERATED -- Ignore unavailable to you. Want to Upgrade?

To: Dealer who wrote (40452)	8/21/2001 9:54:30 AM
From: Dealer	Respond to of 65232

Cohen's lowered targets (in case anyone here pays attention to such as this) In the meantime, Goldman Sachs' influential head of investment strategy Abby Joseph Cohen lowered her year-end target for the S&P 500 to 1,500 from the previous 1,550. That's an upside of 28 percent from current levels. Her year-end target for the Dow Industrials stands pat at 12,500, which represents a gain of 21 percent from current levels. Cohen also slashed her S&P operating earnings-per-share projections on Tuesday to $51 from $56.50 for 2001 and to $56 from $61.50 for 2002. Cohen last trimmed her targets on April 18. On that day she cut her 2001 targets on the S&P 500 to 1,550 from 1,650 and on the Dow to 12,500 from 13,000 while also lowering her longstanding 2001 estimate for S&P 500 operating EPS to $56.50 from $60. Cohen said she expects earnings growth to resume in 2002, mostly in response to stabilization in domestic economic conditions. "Many industries experienced their peak EPS growth in late 1999 and early 2000 and have already seen notable adjustments during the last six to eight quarters. The aggressive use of writedowns in 2001 will set the stage for easier comparisons in many industries," Cohen said in a note to clients. Cohen said her model portfolio remains overweight in information technology and financial services and underweight in some cyclical sectors, including those with exposure to the global economy. The strategist observed that the analysis of quarterly results has been complicated by wide variations in accounting practices this year.