Cohen Says There Is Room For More Movement In The Market; Likelihood Of A Double-Dip Recession Dims
According to a report from CNBC, there is room for stock prices to continue to move up. Moreover, recent economic reports reflect that there is low probability of the US suffering from a double-dip recession, according to market guru Abby Joseph Cohen. In a live interview, Cohen said that the US stock market, which always moves ahead of the economy, does not seem to have moved too far at this point.
The chief market strategist for Goldman Sachs (NYSE: GS) has retained her price target for the S&P 500 (NYSE: SPX) at 1250 and 1300 for year end. The S&P is currently around 1140. While she agreed that several investors missed substantial opportunities a year ago, she said that the slow return is being triggered by lower volatility and low correlation between assets and within markets.
Cohen also mentioned that the risk appetite of investors has improved and that they are moving away from Treasuries and mutual funds to equities and corporate bonds.
According to Cohen, with companies raising their dividends, improving employment figures and increased demand, there is less likelihood of a double-dip recession hitting the country.
