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Cohen: Trim stock holdings
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January 7, 1999: 12:42 p.m. ET
While still bullish, Goldman Sachs' seer cuts stocks in model portfolio to 70%
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NEW YORK (CNNfn) - Longtime bull Abby Joseph Cohen, the fabled Wall Street soothsayer at Goldman Sachs, is trimming her recommended allocation for stocks in a model portfolio.
Cohen, co-chair of Goldman's investment committee and recently named a partner, is advising investors to devote 70 percent of their holdings to stocks, down from 72 percent, and fill the void with fixed-income securities.
While the move Thursday may not seem like much, it suggests Cohen sees the stock market -- which has blasted upward sharply in the first three trading days of 1999 -- as overbought.
However, citing renewed confidence of investors, Cohen is still bullish and sees stock prices climbing further in the long haul, just at a "less robust" pace.
Cohen last tinkered with her recommended asset mix back on Sept. 1, boosting equities to 72 percent from 65 percent.
"Equity valuation is less attractive today than in September, when stock prices were roughly 30 percent lower," she said. "But we do not view valuation as excessive nor as an impediment to higher stock prices."
Since Aug. 31, the Dow industrials average has risen 27 percent and the S&P 500 index has gained 33 percent.
Now, twenty-seven percent of her model portfolio would be devoted to bonds, up from 25 percent. The commodity weighting remains at 3 percent, and cash at zero percent. 
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