Goldman Analyst Bullish on Stocks' Recovery

Cohen predicts S&P to gain 10% by Jan 2010
By Nick McMaster,  Newser Staff
Posted Aug 6, 2009 5:22 PM CDT
A trader works on the floor of the New York Stock Exchange in New York, Monday, Aug. 3, 2009.   (AP Photo/Seth Wenig)

(Newser) – A top Goldman Sachs forecaster predicts the recovery in stocks that began in March should hold, Reuters reports. The S&P 500 could rise as much as 10% from its current level to top 1,050-1,100, says Abby Joseph Cohen, the chief of Goldman’s investment policy committee. "We do think the new bull market has begun," Cohen said. "It may prove it began in March of this year."

Cohen—who, it should be noted, has a reputation for optimism—says she also expected the labor market to improve, but to show hiccups along the way. "It appears job losses are slowing, and there is some job creation going on," Cohen says. But "we have many more months of difficult labor situation ahead, even if the recession, using GDP or industrial production, is almost over."