Enter multiple symbols separated by commas

More Investors Leaving Sidelines: Goldman's Cohen

More investors are coming off the sidelines and investing in the stock market, Abby Joseph Cohen told CNBC Wednesday.

Abby Joseph Cohen
Abby Joseph Cohen

The Goldman Sachs senior U.S. investment strategist and longtime market bullsaid investors are becoming more tolerant of risk, although Tuesday's 200-point drop in the Dow industrials was "an exception, everyone nervous about Greece."

However, "by and large, the worries about Europe have receded," she said. "That doesn’t mean there may not be some potential issues including how the Iranian situation is ultimately resolved."

There have been better U.S. economic data and a growing sense that "there is money on the sidelines that is coming into the markets right now and I think many institutional investors are either coming back in or at least preparing themselves to come back into the U.S. equity market," Cohen said.

She said stocks are undervalued. Using one particular metric, she said stocks on the Standard & Poor's 500 appear to have priced in a 7 percent decline in corporate profits for each of the next five years.

"That’s possible but it’s not likely," she said, "but it gives you a sense of how nervous investors have been, and the sort of opportunities in equities if, in fact, the recessionis over and profit growth continues."

Contact U.S. News


    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

  • Why women cheat?

    Is cheating bad? Why do women cheat? The founder and CEO of affair website Ashley Madison tells all, including why he has his eye on China.

  • Judge's gavel

    The Financial Industry Regulatory Authority disciplined several financial services firms and individuals in May 2015.

  • Fine wines & finance

    Why you should try something a little different on date night. Bring the romance and champagne, and a calculator too. Every once in a while have a date to talk money and finance, and keep an important part of your relationship on track. Reporter Sharon Epperson talks to a couple who does just that.

U.S. Video

  • Cramer: Here's a sign the market could rally

    Wall Street's been soaking in red, but "Mad Money" host Jim Cramer has one signal to watch for that could point to another run.

  • Burger war maneuvers

    Cramer looks at the number of company's selling burgers and tries to determine the quality names, as well as those to avoid.

  • Cramer: What's driving defense?

    Cramer says that even though President Obama has made it clear the US can no longer be the world's policeman, the country can become the world's arms dealer. Profiting from defense spending.