GO
Loading...

Enter multiple symbols separated by commas

Outlook 07: Cohen Sees No Recession

The slowing U.S economy will avoid falling into recession, while energy, large-cap industrial conglomerates and software will likely outperform the overall market in 2007, Goldman Sachs strategist Abby Joseph Cohen told CNBC’s Maria Bartiromo in an exclusive live interview on cnbc.com’s home page.


In a wide-ranging interview, Cohen, chief U.S. portfolio strategist at Goldman Sachs, shared her views on the economy, inflation, the dollar and attractive sectors in which to invest, as part of cnbc.com’s “Outlook 07” series focusing on the year ahead.


Cohen said Goldman Sachs “expects a good year” for U.S. stocks in 2007, but “maybe not as robust as this year.” As for Europe and Japan, Cohen said she had “some reservations” about valuations there.


Cohen cited company legal restrictions in naming individual stocks, but did signal out several sectors. An improving capital sending environment will help tech firms focusing on software and applications. Cohen said Goldman was “enthusiastic” about the energy sector, despite its two-year rally, citing strong global demand. She also said the firm was a “long-term fan of financial stocks,” saying their large-size, multi-national structure and good management made them attractive.

On the economy, Cohen said the U.S. economy will grow below trend in 2007, around 2.0%, but Goldman does not think core inflation rises in a notable way”, implying that the Federal reserve will not need to raise short-term interest rates. She added that recent signs of wage pressures were some cause for concern.


Cohen is not concerned about the falling U.S. dollar, however, saying “ a decline in the dollar is better news for us, than other nations” because it helps the U.S. export sector.

Contact U.S. News

  • CNBC NEWSLETTERS

    Get the best of CNBC in your inbox

    Please choose a subscription

    Please enter a valid email address
    To learn more about how we use your information,
    please read our Privacy Policy.

Don't Miss

U.S. Video

  • Hero miles for military members: Real estate magnate's plea

    Chairman of the Fisher House Foundation, Ken Fisher, discusses the Hero Miles program with CNBC's Dina Gusovsky. During Military Appreciation Month, Fisher is asking every traveler to donate 1,000 of their miles to replenish the Hero Miles programs that is in danger of running out.

  • Cramer shuts down this market's haters

    "Mad Money" host Jim Cramer on why this market can't stop, won't stop.

  • From the battlefield to the boardroom

    Your Grateful Nation is dedicated to helping Special Forces veterans enter the corporate world and Knot Standard provides complimentary suits to vets. Mad Money's Jim Cramer spoke with Rob Clapper, Your Grateful executive director; John Ballay, Knot Standard co-founder and president; Tej Gill, retired U.S. Navy Seal; and Darren McB, active duty U.S. Navy Seal.