- Peak Oil Closer Than IEA Forecasts Show: Report
- UK Most at Risk of Losing Top Credit Rating: Fitch
- GM CEO Starts Charm Tour at Opel in Germany
- Vodafone Extends Cost-Cutting Scheme, Hits Targets
- Bad Debt Weighs on Barclays Earnings
- HSBC Operating Profit Beats, US Bad Debts Slip
- Fed's Tarullo Backs Surcharges to Limit Bank Size
- Look Ahead: 'Risk On' Sentiment Could Fuel Rally Further
- 'Modern Warfare 2': Biggest Entertainment Event?
- Why Google is Paying $750 Million for Ad Mob
- Warren Buffett to Sell Stakes In Union Pacific & Norfolk Southern
- Nov. 9: Unusual Volume Leaders
- The Battered Businesses Behind Housing
- Modern Warfare 2's Record-Breaking Launch
- Merck’s Mega-Monday Morning
- Why are Traders Bullish on This Food Company?
- Profiting From Natural Gas: Strategists
- S&P Stocks Trading at New 52-Week Highs
MOST SHARED
- Obama Sees Strains Unless US, China Balance Growth
- Can Apple Top Microsoft as Most Valuable Tech Firm?
- Future of Marketing
- Mad Mail: Buy the Berkshire Hathaway Split?
- European Commission Objects to Sun Micro-Oracle Deal
- GM CEO Starts Opel Charm Tour in Germany
- Framed for Porn – By a PC Virus
- A Year on, China's Stimulus Postpones its Problems
- Israel: Leader of Business Innovation
Text Size 
The US stock market appears to have hit bottom and the nation's economy might see an upward shift in the latter half of the year, widely watched investment strategist Abby Joseph Cohen told CNBC.
 |
Abby Joseph Cohen |
“One thing to keep in mind is that we have undergone many months of very dramatic declines in earnings expectations, and also in revisions to the economic forecast by macro-forecasters,” said Cohen, president of the Goldman Sachs Global Markets Institute. “And something has changed over the past month and that is that the consensus numbers aren’t being adjusted very much. I think that means that many investors now believe that the forecasts are finally as low as they need to be.”
Goldman Sach is forecasting that the S&P 500, currently around 850, will hit 900 by the end of this year, Cohen said in a live interview.
Meanwhile, investors should be more trading-oriented than usual to take advantage of the market's volatility.
“What we’re suggesting to many of our clients is that they be somewhat more trading oriented than normal because the markets are more volatile,” Cohen said. “Just last week, our analysts in the retail sector indicated that they were seeing some opportunities among some securities with a little higher beta. We’ve also had significant opportunities in some of the categories related to natural resources and industrials.”
Cohen said the markets are more normal than they have been in the past few months, a reason investors can feel more comfortable.
(Watch Part 2 of the Interview)
“This applies not only to the equity market but also to the bond market,” she said. “We’re beginning to see some better news appear, but let’s keep in mind that we have some bad news, particularly with regard to unemployment. The question for investors is whether or not that bad news is already incorporated in share prices.”
- Slideshow: What Does $1 Trillion Look Like?
- Recession Stressing You Out? Here's How to Cope
- Market Rally Could Trip Over the Bottom Line
Print
Email
- Do free market libertarians really believe what they say about ethics and shareholder value? The Big Money takes a look.
- Cramer did the research and found eight stocks that lead the pack. Read on to get his top picks.
- On the anniversary of the fall of the Berlin Wall, many in the former Eastern Bloc recall communism fondly.
- Software, biotech firms, even banks are watching a particular Supreme Court argument today.
- From politicians to CEOs to companies, here's your chance to vote for the winners and losers of 2009.
- The health care reform bill that passed the House on Saturday will have a much harder time in the Senate.
Data is a real-time snapshot *Data is delayed at least 15 minutes