Stocks May Already be Priced for Recession: Abby Joseph Cohen

By on August 22, 2011

Abby Joseph Cohen, senior investment strategist, Goldman Sachs, was on CNBC Friday giving her usual happy talk. She did make one observation that does have some basis in reality when she stated, “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.”

SMA Comment: With the S&P 500 trading where it was over 13 years ago, skepticism regarding economic growth prospects is at a high ebb. Investors appear to be overly fearful and are dumping high quality equity investments when they should be accumulating them.

One Comment

  1. Brendi

    December 5, 2012 at 5:18 pm

    The way this insight has been provided has really opened my mind for ABBY stock, check it out at, Vippennystocksite dotcom, is a amazing place

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