The U.S. isn't going back into a recession, though economic
growth has slowed, Goldman Sach's chief equity strategist Abby Joseph Cohen
told CNBC Monday. "All you need to believe is that we will avoid another
recession over the next couple of years," she told Squawk on the Street.
"And that is indeed our forecast, even though we see growth has slowed
somewhat."
She said the current historically low interest rates have
made equities a better investment than bonds, which now also have their share
of risk after generations of being perceived as safe.
"It's hard for us to see how bonds can generate the
same kind of returns going forward that they have over the last 30 years,"
she said. "Equities seem to be very attractively valued."
She said she agrees with Goldman economist Jan Hatzius's
forecast of the second half being more "difficult" than the first.
"We have seen some deceleration in economic activity" after a mild
winter that might have "puffed up" seasonal growth in the first
quarter, she said. But slow growth is
still growth, and the longer-term trend is to the upside, she said….
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