Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Pastimes : DA CONTEST -- Ignore unavailable to you. Want to Upgrade?

To: Jorj X Mckie who wrote (427)	11/21/2001 12:06:28 AM
From: Bernard Ng	Read Replies (2) \| Respond to of 1025

Hi JXM, my best indicator, Abby... has spoken LOL..... got it from the headline news today... I will love to see what will happen tomorrow or the near future. She's the best indicator for me LOL... the opposite way. Now it's time for me to put in another DOWN DOWN DOWN... ooops, I'm too late for tomorrow's contest. Goldman Sachs' chief investment strategist Abby Joseph Cohen maintained her bullish stance on equities, indicating that equity risk premiums have moved to less extreme levels as more encouraging news has emerged on the war front and investor confidence that profits may halt their decline by mid-2002 increases. "Third-quarter earnings were bad and fourth-quarter results will be worse. But investors are willing to look through the near-term gloom and focus on expected recovery next year," she told clients in a research note. Cohen raised her equity allocation to 75 percent -- the highest ever -- on Sept. 24 and points out that the major averages have rebounded about 20 percent since. She maintains her 75-percent stock allocation, with 22 percent in bonds and 3 percent in commodities. Her year-end 2002 levels are 1,300 to 1,425 for the S&P and 11,300 to 12,400 for the Dow Industrials. Cohen notes that earnings may bottom in the fourth quarter -- even if the economy doesn't. She believes that the substantial year-on-year earnings gains will come in the second half of 2002, even if S&P 500 earnings-per-share may improve sequentially early next year. "We believe that the key for equity investors will be the positive inflection point in earnings performance. We expect the improvement to be supportive of still-higher stock prices and believe that corporate bonds will benefit from the same trends," Cohen concluded. signed, Bernard