Goldman's Cohen Sees S&P 500 Rising 14% by End-2008

Bloomberg reports:

Goldman Sachs Group Inc.'s Chief Investment Strategist Abby Joseph Cohen forecast the Standard & Poor's 500 Index may end 2008 at 1,675, an increase of 14 percent from yesterday's close, ``as recession fears fade.''

``U.S. stocks will offer moderate gains and will dramatically outperform bonds over a 12-month horizon,'' New York-based Cohen wrote in a report today. ``Recession will likely be avoided, due to strength in exports and capital spending by corporations and governments, and thanks to a vigilant and flexible Federal Reserve.''

Cohen's 2007 forecast that the S&P 500 will end the year at 1,600 implies an 8.7 percent advance by Dec. 31. The benchmark for American equities has added 3.8 percent this year.

Abbey Cohen is paid well to promote the bullish view of the stock market for Goldman.1675 by next year this time,we doubt it.The mortgage mess should drag the S&P 500,next year,down below 1370.