July 31, 2002
High Praise For Abby


Business Week’s Gene Marcial wrote an article yesterday which is quite possibly the most ridiculous article I have ever read. This is no small feat considering some of the columns James Glassman has written over the years.

“Just a week ago, Goldman Sachs's resident optimist advised clients that "equities are priced too cheaply." Could be a good call.”

“Abby Joseph Cohen, chief market strategist at Goldman Sachs, has maintained her cool through it all.”

“It looks like her unwavering confidence in a market rebound is now being validated.”

“The erudite and amazingly prescient market guru has been one of the few consistent -- and persistent -- believers in the stock market.”

”Never did she panic during the market's broad two-and-half-year decline. Even when things appeared to be darkest, Cohen exuded reasonable calm, patiently citing rational explanations behind the market's bearish gyrations.”

“Cohen was ahead of the crowd. In a missive to clients on July 22, when so many other professional and individual investors were voicing doom and gloom, Cohen wrote: "Equities are priced too cheaply."

What Mr. Marcial neglected to do is make any specific mention of Abby’s track record.  For certain, Abby repeatedly called for Dow 13,000 and S&P 1,650 through out 2000, and she used the term ‘notable undervaluation’ and variances of this term after every severe sell-off during 2001. Abby wasn’t ‘optimistic’, ‘cool’, ‘calm’, ‘rational’, and ‘ahead of the crowd’.  She was, and still is, ‘blind’, ‘laughing all the way to the bank’, and ‘irrational’.  In sum, Cohen’s mantras have cost any investor listening to her dearly…

Being wrong is one thing (everyone makes mistakes).  However, when someone like Mr. Marcial claims that Abby’s ‘unwavering confidence’ is now being ‘validated’ this is just plane ludicrous.  Perhaps if Amazon rallies by a couple of bucks Mr. Marcial can tell us how prescient Henry Bloget was.

A Turnaround Won't Surprise Abby Cohen   Business Week


BWillett@fallstreet.com

Wish List


All data and information within these pages is thought to be taken from reliable sources but there is no guarantee as such. All opinions expressed on this site are opinions and should not be regarded as investment advice.
Copyright © 2000, 2001, 2002
FallStreet.com

The Financial Ad Trader
The Financial Ad Trader