This morning on “Squawk on the Street”, Abby Joseph Cohen, Goldman Sachs Chief U.S. Portfolio Strategist talked about her official 2007 year end target (In case you’re wondering she was right on for 2006).
Here’s what Abby Joseph Cohen had to say to CNBC's Mark Haines and Erin Burnett.
"We think ’07 finishes about 10% higher -- The S&P at 1550 and the Dow 13,500."
"We think the better performing stocks are those of the highest quality companies – we’re looking for above average earnings growth and above average returns on equity. We think volatility will pick up; it has been remarkably low for the past 2 years. And, as it rises, investor become risk averse. They will seek out higher quality stocks and higher quality stock markets - and in the bond markets a preference for the higher quality bonds."
"We do not advise moving into so-called defensive stocks – we think stocks that offer a high yield that don’t also have strong earnings growth are not the place to be. Instead--we are focusing on good quality growth companies because on a relative valuation basis we think that’s where the best opportunities are."
Erin Burnett asked about putting money in the tech sector, if there's a concern about risk.