Abby Joseph Cohen
Encyclopedia
Abby Joseph Cohen is an American
economist
and financial analyst
on Wall Street
. She is a partner and——Senior U.S. investment strategist at Goldman Sachs
. Prior to that date, she was Chief Investment Strategist. In 2001 she was named one of the 30 most powerful women in America by Ladies Home Journal.
and George Washington University
.
serving until 1977. She worked as an economist and quantitative research director for T. Rowe Price Associates
. She obtained her Chartered Financial Analyst
charterholder designation in 1980. From 1983 until 1988, Cohen was the vice president in charge of investment strategy at Drexel Burnham Lambert
.
Following the Michael Milken
fiasco and subsequent United States Department of Justice
investigation into Drexel Burnham Lambert's affairs that led to the firm's demise, Cohen worked for a short time with Barclays de Zoete Wedd, then joined Goldman Sachs
in New York City
as a vice president and co-chair of the Investment Policy Committee in 1990, and was named a managing director in 1996.
appearance in March 2008, she predicted S&P 500 at 1550 by end 2008.
In an August 10, 2007 appearance on CNBC
Abby Joseph Cohen predicted the S&P 500
would rally to 1,600 by December.
In December 2007 Abby Joseph Cohen predicted the S&P 500 index would reach 1,675 in 2008. The S&P 500 traded as low as 741.02 by November 2008, 55% below her prediction.
On March 8, 2008 Goldman Sachs announced that Abby Joseph Cohen was being replaced by David Kostin as the bank's chief forecaster.
On May 1, 2009 Abby Joseph Cohen predicted, "The Standard & Poor’s 500 Index may jump 20 percent to 1,050 over the next six to 12 months as investors buy stocks trading at low valuations."
On August 6, 2009 Abby Joseph Cohen declared, "the new bull market has begun," and proclaimed Goldman Sachs sees the benchmark Standard & Poor's 500 index .SPX in a range of 1,050-1,100 toward year-end. The S&P 500 index traded around 1,000 on August 6, 2009, after a 50% run-up from the year's low.
and is the Chairman of the Board of the Jewish Theological Seminary of America
.
United States
The United States of America is a federal constitutional republic comprising fifty states and a federal district...
economist
Economist
An economist is a professional in the social science discipline of economics. The individual may also study, develop, and apply theories and concepts from economics and write about economic policy...
and financial analyst
Financial analyst
A financial analyst, securities analyst, research analyst, equity analyst, or investment analyst is a person who performs financial analysis for external or internal clients as a core part of the job.-Job:...
on Wall Street
Wall Street
Wall Street refers to the financial district of New York City, named after and centered on the eight-block-long street running from Broadway to South Street on the East River in Lower Manhattan. Over time, the term has become a metonym for the financial markets of the United States as a whole, or...
. She is a partner and——Senior U.S. investment strategist at Goldman Sachs
Goldman Sachs
The Goldman Sachs Group, Inc. is an American multinational bulge bracket investment banking and securities firm that engages in global investment banking, securities, investment management, and other financial services primarily with institutional clients...
. Prior to that date, she was Chief Investment Strategist. In 2001 she was named one of the 30 most powerful women in America by Ladies Home Journal.
Education
Cohen earned economics degrees from Cornell UniversityCornell University
Cornell University is an Ivy League university located in Ithaca, New York, United States. It is a private land-grant university, receiving annual funding from the State of New York for certain educational missions...
and George Washington University
George Washington University
The George Washington University is a private, coeducational comprehensive university located in Washington, D.C. in the United States...
.
Career
Cohen began her career as an economist in 1973 at the Federal Reserve Board in Washington, D.C.Washington, D.C.
Washington, D.C., formally the District of Columbia and commonly referred to as Washington, "the District", or simply D.C., is the capital of the United States. On July 16, 1790, the United States Congress approved the creation of a permanent national capital as permitted by the U.S. Constitution....
serving until 1977. She worked as an economist and quantitative research director for T. Rowe Price Associates
T. Rowe Price
T. Rowe Price is a publicly owned Investment firm, headquartered in Baltimore, Maryland. It was founded in 1937 by Thomas Rowe Price, Jr.. The company offers mutual funds, subadvisory services, and separate account management for individuals, institutions, retirement plans, and financial...
. She obtained her Chartered Financial Analyst
Chartered Financial Analyst
The Chartered Financial Analyst Program is a graduate level self-study program offered by the CFA Institute to investment and financial professionals...
charterholder designation in 1980. From 1983 until 1988, Cohen was the vice president in charge of investment strategy at Drexel Burnham Lambert
Drexel Burnham Lambert
Drexel Burnham Lambert was a major Wall Street investment banking firm, which first rose to prominence and then was forced into bankruptcy in February 1990 by its involvement in illegal activities in the junk bond market, driven by Drexel employee Michael Milken. At its height, it was the...
.
Following the Michael Milken
Michael Milken
Michael Robert Milken is an American business magnate, financier, and philanthropist noted for his role in the development of the market for high-yield bonds during the 1970s and 1980s, for his 1990 guilty plea to felony charges for violating US securities laws, and for his funding of medical...
fiasco and subsequent United States Department of Justice
United States Department of Justice
The United States Department of Justice , is the United States federal executive department responsible for the enforcement of the law and administration of justice, equivalent to the justice or interior ministries of other countries.The Department is led by the Attorney General, who is nominated...
investigation into Drexel Burnham Lambert's affairs that led to the firm's demise, Cohen worked for a short time with Barclays de Zoete Wedd, then joined Goldman Sachs
Goldman Sachs
The Goldman Sachs Group, Inc. is an American multinational bulge bracket investment banking and securities firm that engages in global investment banking, securities, investment management, and other financial services primarily with institutional clients...
in New York City
New York City
New York is the most populous city in the United States and the center of the New York Metropolitan Area, one of the most populous metropolitan areas in the world. New York exerts a significant impact upon global commerce, finance, media, art, fashion, research, technology, education, and...
as a vice president and co-chair of the Investment Policy Committee in 1990, and was named a managing director in 1996.
Successes and Failures
She is famous for predicting the bull market of the 1990s early in the decade. However, she failed to predict the dramatic stock market decline of the early 2000s and developed a reputation as a so-called "perma-bull" and was ridiculed for her continuous bullish predictions after March 2000 as market indices fell. Her reputation was further damaged when she failed to foresee the great crash of 2008. On a CNBCCNBC
CNBC is a satellite and cable television business news channel in the U.S., owned and operated by NBCUniversal. The network and its international spinoffs cover business headlines and provide live coverage of financial markets. The combined reach of CNBC and its siblings is 390 million viewers...
appearance in March 2008, she predicted S&P 500 at 1550 by end 2008.
In an August 10, 2007 appearance on CNBC
CNBC
CNBC is a satellite and cable television business news channel in the U.S., owned and operated by NBCUniversal. The network and its international spinoffs cover business headlines and provide live coverage of financial markets. The combined reach of CNBC and its siblings is 390 million viewers...
Abby Joseph Cohen predicted the S&P 500
S&P 500
The S&P 500 is a free-float capitalization-weighted index published since 1957 of the prices of 500 large-cap common stocks actively traded in the United States. The stocks included in the S&P 500 are those of large publicly held companies that trade on either of the two largest American stock...
would rally to 1,600 by December.
In December 2007 Abby Joseph Cohen predicted the S&P 500 index would reach 1,675 in 2008. The S&P 500 traded as low as 741.02 by November 2008, 55% below her prediction.
On March 8, 2008 Goldman Sachs announced that Abby Joseph Cohen was being replaced by David Kostin as the bank's chief forecaster.
On May 1, 2009 Abby Joseph Cohen predicted, "The Standard & Poor’s 500 Index may jump 20 percent to 1,050 over the next six to 12 months as investors buy stocks trading at low valuations."
On August 6, 2009 Abby Joseph Cohen declared, "the new bull market has begun," and proclaimed Goldman Sachs sees the benchmark Standard & Poor's 500 index .SPX in a range of 1,050-1,100 toward year-end. The S&P 500 index traded around 1,000 on August 6, 2009, after a 50% run-up from the year's low.
Civic Works
Abby Joseph Cohen is a trustee of Cornell UniversityCornell University
Cornell University is an Ivy League university located in Ithaca, New York, United States. It is a private land-grant university, receiving annual funding from the State of New York for certain educational missions...
and is the Chairman of the Board of the Jewish Theological Seminary of America
Jewish Theological Seminary of America
The Jewish Theological Seminary of America is one of the academic and spiritual centers of Conservative Judaism, and a major center for academic scholarship in Jewish studies.JTS operates five schools: Albert A...
.