A bull market makes geniuses out of many people in the financial markets — think Richard Fuld of Lehman Brothers and Sandy Weill of Citigroup.
We probably won’t be hearing from those guys anytime soon, but Goldman Sachs investment strategist Abby Joseph Cohen is back and more bullish than ever.
Cohen, known for rarely finding a U.S. stock she didn’t like in the 1990s, says the economy and stock market now appear to have hit bottom.
“One thing to keep in mind is that we have undergone many months of very dramatic declines in earnings expectations, and also in revisions to the economic forecast by macro-forecasters,” she tells CNBC.
“Something has changed over the past month and that is that the consensus numbers aren’t being adjusted very much. I think that means that many investors now believe that the forecasts are finally as low as they need to be.”
Goldman forecasts that the Standard & Poor’s 500 will hit 900 by year-end, about 5 percent above current levels.
“What we’re suggesting to many of our clients is that they be somewhat more trading oriented than normal because the markets are more volatile,” Cohen says.
“Just last week, our analysts in the retail sector indicated that they were seeing some opportunities.”
Some other experts have turned bullish too. Investment guru Marc Faber tells Bloomberg that the S&P may jump 16 percent to 1,000 by July. He sees strong bank earnings powering the move.
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