The stock market may be pricing in a recession, but such a severe slowdown in the U.S. economy is an "unlikely scenario," well-known stock market guru Abby Joseph Cohen told CNBC Friday.
"Let’s be very clear, there are some fundamental worries," the Goldman Sachs senior investment strategist told CNBC Friday. "But our feeling is the valuation of the U.S. stock market is already pricing in a rather ugly scenario."
She added, "There are many different ways to look at the mathematics of valuation, but one of them is to say at these levels on the [Standard & Poor's 500] what’s priced in is many years of no earnings growth. That does not seem to us to be the most likely scenario."
She said there are several potential catalysts to spark the market higher including improving retail sales, some job creation and the strength of U.S. companies.