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Politics : Idea Of The Day -- Ignore unavailable to you. Want to Upgrade?

To: IQBAL LATIF who wrote (48914)	8/19/2005 8:12:32 PM
From: IQBAL LATIF	Read Replies (1) \| Respond to of 50167

Dan Weiner’s Interview with Abby Cohen: “We’re Expecting Much More Profit Growth” by Dan Wiener, Editor The Independent Adviser for Vanguard Investors August 19, 2005 SEND TO A FRIEND \| GET FREE ADVICE Goldman Sachs’ chief U.S. investment strategist really needs no introduction. Abby Cohen, 53, has graciously accepted my regular invitations to provide her incomparable insights for years. Our relationship dates back to her early days at T. Rowe Price and Drexel Burnham, but the thoughtfulness and clarity of her thinking has best emerged, I believe, since joining Goldman Sachs in 1990. Let me share with you an excerpt of my recent conversation with her: Abby, let’s do the top-down first. It all comes down to earnings and interest rates. Rates are still low, inflation remains low, earnings are still growing. Last year I think you said the economy would grow 4%. It’s actually done a little better than that. So where are we going from here? You have raised your estimates and you’re also pretty positive on 2006, so what’s all the market anxiety about? The anxiety, interestingly, is fading away as we’re talking. The first half of 2005 was a period of great performance, the U.S. economy did well, not that there weren’t some months that were weaker than others, but by and large the economy grew, jobs were created, corporate profits were good, balance sheets improved even further and companies began to invest in the future. And we can see that in the labor markets and also capital spending. What’s interesting is that despite all the good fundamental moves, the stock market was stuck, and it really gets to your point that people were nervous. investorplace.com