Bloomberg the Company

Bloomberg Anywhere Login


Connecting decision makers to a dynamic network of information, people and ideas, Bloomberg quickly and accurately delivers business and financial information, news and insight around the world.


Financial Products

Enterprise Products


Customer Support

  • Americas

    +1 212 318 2000

  • Europe, Middle East, & Africa

    +44 20 7330 7500

  • Asia Pacific

    +65 6212 1000

Follow Us

Industry Products

Goldman’s Cohen Says Stocks Will Give Better Returns Than Bonds

Don't Miss Out —
Follow us on:

July 27 (Bloomberg) -- Abby Joseph Cohen, the senior U.S. investment strategist at Goldman Sachs Group Inc., said equities will generate better returns than bonds for investors in the medium-to-long term.

“If we were to look just at fair-value estimates over the next year to three, we think that returns that are roughly 8 to 10 percent on the stock market are sensible,” she said in an interview on Bloomberg Surveillance today with Tom Keene. “It is sensible as well for a long-term outlook, even though we assume that economic growth will not be as robust as it was in the years immediately prior to the financial crisis.”

The Standard & Poor’s 500 Index has surged 25 percent from its 2011 low in October as economic data beat forecasts and Federal Reserve Chairman Ben S. Bernanke said policy makers stand ready to act if more stimulus measures for the U.S. economy are needed.

Since the financial crisis, many companies have repaired their balance sheets, boosting returns for shareholders, said Cohen, who is based in New York.

“The focus has been on margins, ROEs and returning capital to shareholders,” she said, referring to so-called return on equity. “We’ve seen dividends increase, we’ve also seen share repurchases increase.”

To contact the reporters on this story: Tom Stoukas in Athens at; Tom Keen in New York at

To contact the editor responsible for this story: Andrew Rummer at

Please upgrade your Browser

Your browser is out-of-date. Please download one of these excellent browsers:

Chrome, Firefox, Safari, Opera or Internet Explorer.