Goldman Sachs has replaced its famously bullish chief forecaster, Abby Joseph Cohen, with a less upbeat analyst, Bloomberg reports. Cohen will remain as senior investment strategist, handing over the daily predictions to David Kostin. Kostin sees a decline for the S&P 500 to 1160 in the short run, and a rebound to 1,380 by year's end. Cohen, by contrast, predicted in December that the index would reach 1,675 in 2008.
"Sounds like it's a downgrade in a position,'' an analyst told Bloomberg. "People have been disappointed in her outlook over the years, and she's been pegged as overly bullish on the market.'' Cohen has long been one of Wall Street's most prominent forecasters, but her judgment was called into question after she failed to see the dot-com crash coming.