Abby Cohen Quotes (15 Quotes)

Opportunities are likely to present themselves, especially given a 6- to 12-month time horizon.

Little of a fundamental nature, specific to the U.S. economy or corporate performance, has changed in recent weeks.

Corporations in the United States continue to generate good profits. Stock prices are below where they might be based upon the fundamentals for 2005.

We don't think so, and continue to assume long-term earnings growth of 7 percent-to-8 percent in our valuation model.

Equity prices can rise, despite decelerating profit growth and moderately rising interest rates, if investors expect economic expansion to continue. In previous such cases, stocks outperformed bonds, often notably.

Models work when they are appropriate for the particular circumstance, but some of the best investment judgments over time have come when people recognized that models derived in other periods were broken or not directly relevant.

The global backdrop in 1999 will continue to offer impediments, but we expect Supertanker America to stay its course of moderate economic and profit growth. A supertanker is not necessarily fast or colorful, but it is steady and reliable and hard to push off course.

After September 11, 2001, we assumed that the equity risk premium demanded by investors would be above the historical average, but did not anticipate the current extreme reading which is near the highs of the past three decades.

It is too soon to know how the situation in Iraq will unfold in the coming months, and the extent to which the new government can indeed control the country. But, for the present, investors seem relieved that the direction is not toward an increased level of U.S. involvement.

For the first time in a decade, our model portfolio is no longer recommending an overweighed position in technology.

We expect 1999 and 2000 to be years of ongoing profit expansion, with better aggregate gains than 1998, which was disappointing.

We are currently advising a moderate overweight, with an emphasis on oil services and a small number of integrated producers.

Our valuation work for the SP 500 has long assumed moderation of profit growth to about 8 percent from 20 percent and a rise in core inflation.

I think what we had today was a disconnect between the stock market and the economy. The U.S. economy looks great...corporate profits are good...inflation and interest rates will be friendly for longer.

The basic conclusion is that 1999-2000 will bring further gains in corporate profits, mild-mannered inflation and a generally favorable outcome for equity prices. Increasing confidence that the economic expansion will continue through our newly-extended forecast horizon encourages a modest upward revision in stock price targets.