LEGENDARY STRATEGIST, ABBY JOSEPH COHEN ON THE MEGA CHANGES HITTING THE MARKETS & GLOBAL ECONOMY

May 6, 2022

Are you feeling at all overwhelmed by the pace and degree of change we are experiencing in the world, the economy, the markets, life in general? 

A series of head-spinning turns in events ranging from rising inflation and interest rates, Russia’s relentless and brutal assault on Ukraine, and a surprise leak of a draft of a  momentous Supreme Court opinion are perfectly encapsulated by the dramatic market action of the last two days. After the Federal Reserve raised short-term interest rates by half a percentage point (50 basis points) on Wednesday the Dow experienced its largest gain since 2000, up more than 900 points, nearly 3% to 34,061.06. Investors were evidently reassured by Fed Chairman Jerome Powell’s comments that the central bank was not “actively considering” raising rates by a sharper three-quarters of a percent (75 basis points). That reassurance turned to doubt on Thursday when the Dow made a U-turn, falling 1,063 points, a 3.1% drop, its largest decline this year. 

As we have covered in several recent WEALTHTRACK episodes there appears to be a new world order emerging on several fronts which calls for new investment approaches. But what will the new order look like? How lasting are the changes, and what are the best investment responses?

This week’s guest has the breadth, knowledge, and experience to tackle all those questions and more. She is a long-time investment star who has never lost her influence or cool. She is Abby Joseph Cohen, now a professor at Columbia Business School, teaching the popular and oversubscribed “Future of the Global Economy” course which she has been doing as an adjunct professor since 2014.

I am delighted she is with us to discuss the contours of the new world order and their impact on the economy and markets. 

WEALTHTRACK Episode #1845 broadcast on May 06, 2022

Listen to the audio-only version here:

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ABBY JOSEPH COHEN

  • Professor,
  • Columbia Business School
  • Former Advisory Director & Senior Investment Strategist, Goldman Sachs
  • Former Chief US Investment Strategist, Goldman Sachs
  • Former President, Goldman Sach’s Global Markets Institute

ACTION POINT

REVIEW WHAT’S IN YOUR PORTFOLIO

  • 2022’s reversal of market fortunes
    • Big tech and growth stocks battered
    • Energy and cyclical stocks boosted
  • Most portfolios still underweight energy, industrials, value stocks

ONE INVESTMENT

BEST PERFORMANCE OPPORTUNITIES

  • Equities offer superior long-term performance
  • 40-year bond rally is over 
  • Stocks reflect economic growth globally 
  • U.S. stocks best place to be now


BOOKSHELF

The Black Swan: The Impact of the Highly Improbable

ARCHIVES

Abby Joseph Cohen from the WEALTHTRACK Archives:


WEB EXTRA

HAPPY CAREER TRANSITION

During her tenure as Chief U.S. Investment Strategist at Goldman Sachs Abby Joseph Cohen was a superstar, whose every pronouncement was followed on Wall Street. After 30 years of high profile leadership roles at the firm she recently retired and became a professor at Columbia Business School, teaching the same popular “Future of the Global Economy” course she has taught as an adjunct professor since 2014. I asked her how the transition is going?  


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