Skip to content

Abby Joseph Cohen Says Era of Everything Going Up Is Over

  • Fundamentals, security selection matter again as markets slide
  • Investors have already priced in ‘a mild recession,’ she says
Bloomberg business news

Abby Joseph Cohen, a Columbia Business School professor and retired Goldman Sachs partner, says markets have returned to an environment where fundamentals matter and beta will be less important than alpha.

Source: Bloomberg

With fervor in markets receding, investors will need to critically focus on fundamentals and security selection to ride out the turbulence, Abby Joseph Cohen said.

The S&P 500 Index is poised for its worst first half since Richard Nixon’s presidency as red-hot inflation and Federal Reserve interest-rate hikes batter stocks. Amid the current selloff, picking out securities will be important, Cohen, a professor at Columbia Business School and former senior investment strategist at Goldman Sachs Group Inc., said in an interview on Bloomberg Surveillance Wednesday.