Cohen Says Preconditions in Place for Stocks Rally: Tom Keene

Abby Joseph Cohen, the Goldman Sachs Group Inc. strategist known for predicting the bull market in the 1990s, said that while the fundamental factors for a U.S. stocks rally are in place, greater optimism among investors is needed for an advance to begin.

“The preconditions include very significant amounts of cash on the sidelines and, very importantly, attractive valuation,” Cohen, 58, spoke in a Bloomberg Television interview today on “Surveillance Midday” with Tom Keene. “When investors feel more confident in the economic expansion, equities could perform quite well. The S&P 500, for example, is notably underpriced.”