|
Cohen lifts stock holdings
|
 |
September 24, 2001: 9:25 a.m. ET
Influential Goldman Sachs strategist raises equities to 75% from 70%
|
NEW YORK (CNNfn) - Monday boosted stocks to 75 percent of her model portfolio from 70 percent.
The influential Goldman Sachs & Co. (GS: Research, Estimates) strategist also cut her allocation to bonds to 22 percent from 27 percent and left commodities at 3 percent of her recommended portfolio.
|
|
VIDEO
|
|
 Abby Joseph Cohen, Goldman Sachs strategist, talks about raising stocks allocation. |
|
Real
|
28K
|
80K
|
|
Windows Media
|
28K
|
80K
|
|
She kept cash at zero percent of her recommended holdings, the brokerage house said.
Cohen, long one of the most optimistic bulls on Wall Street, said in a research note to clients that while short-term interest rates are likely to fall further, she believes stocks will outperform bonds.
Most economists expect a downturn in the already weak U.S. economy as a result of the Sept. 11 terrorist attacks on New York and Washington. As a result of uncertainty about the economy and its impact on corporate profits, U.S. stock prices plunged last week, the Dow's worst week since the Great Depression.
Despite all the bad news, Cohen saw hopeful signs in the low prices of stocks, the amount of cash sitting on the sidelines, the amount of corporate stock buy-backs, the resilience of the banking system and the stimuli provided by the Federal Reserve, Congress and President Bush.
The Fed has cut its target for short-term interest rates eight times this year, and Congress and the President have authorized a $40 billion disaster relief package, with more fiscal stimulus likely on the way.
"When investors come to accept the view that the seeds for economic reinvigoration have already been sown, a more aggressive approach will be appropriate," Cohen said. 
|
|
|
|
|
 |
|
