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Strategies & Market Trends : Waiting for the big Kahuna -- Ignore unavailable to you. Want to Upgrade?

To: Terry Whitman who wrote (35370)	12/17/1998 5:12:00 PM
From: RealMuLan	Read Replies (1) \| Respond to of 94695

Abby the bull Cohen has something to say again. NEW YORK, Dec 17 (Reuters) - Abby Joseph Cohen, the well-watched U.S. equity market strategist at Goldman Sachs & Co. said she expects 1999 operating earnings among Standard & Poor's 500 companies to grow 5 to 7 percent, and a return to "normal" overall rates of return in the overall stock market. In a note to clients made available by Goldman Sachs, Cohen said she expects wide variations in sectors in 1999. She also said she expected the S&P index to reach 1275 by yearend 1999, with a rough equivalent on the Dow Jones Industrial Average of 9850. But in citing yearend expectations for the S&P and the Dow, Cohen noted that "averages" mislead and she sees notable disparities by sector in economic, profit and stock price performance in 1999. Cohen identified semicondutor-related companies and energy and energy related stocks as as "two important sectors...that may now be well situated to generate earnings gains." "The combination of good, not abnormally good, average returns and wide sector variations in earnings growth and relative valuation will enhance the importance of stock selection in 1999," she said. While noting that the global backdrop in 1999 will continue to offer impediments, Cohen said she expects "Supertanker America" to stay its course of moderate economic and profit growth. And in pointing out that the U.S. is not immune to global problems, Cohen said "it is the only major nation to have demonstrated a growth dynamic in its domestic economy." In addition, Cohen said she expects stock price volatility to return to "normal" levels experienced before summer 1998.