Despite factoring in an expectation for lower corporate profits, Goldman Sachs Chief U.S. Portfolio Strategist Abby Joseph Cohen expects the S&P 500 to rise to 1550 by the end of the year from its current 1436.
“Our feeling is that most of what’s happened in the last two months or so has affected the markets rather than the economy,” Cohen told CNBC's "Squawk Box" this morning. “The U.S. economy continues to grow, obviously at a somewhat slower pace than last year. But moderate economic growth, job increases continue, and profit gains are also still there. When we put this all together in our valuation models, we come up with that 1550 conclusion for the S&P 500 at year end.”