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Cohen keeps 2000 targets
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December 30, 1999: 5:11 p.m. ET
Goldman Sachs’ strategist expects 8-10% market growth, but urges caution
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NEW YORK (CNNfn) - After Wall Street’s strong run in 1999, one of the nation’s top stock strategists said Wall Street could see double-digit growth again next year, but advised investors to be a bit more cautious in their stock selections.
Abby Joseph Cohen, co-chairwoman of Goldman Sachs’ investment policy committee and one of the most respected stock pickers on Wall Street, said despite the recent surge in the Dow Jones industrial average and the Nasdaq composite index, several buying opportunities remain.
"At this point, we think that [Standard and Poor's 500 index] profits will be up eight to 10 percent, so stock prices should rise about the same level,” Cohen told CNNfn.
Cohen pointed to the financial services industry and "other industrial cyclicals” as the most likely areas for growth this year, but said investors still could find some reasonably priced investments in the energy and technology sectors (7M Quicktime movie) as well.
"My feeling is there are some good areas of opportunity left in the Nasdaq, but investors have to be careful,” she said. After a wonderful year in 1999, stocks are not as cheap as they were.”
Cohen said despite the run-up in stock prices the last two weeks, she is maintaining her outlook because of the strong U.S. economy and the projected continued corporate earnings growth, albeit at a slightly more tame level.
Just two weeks ago, Cohen predicted the Dow Jones industrial average would close the year 2000 above 12,300 while the S&P 500 would finish above 1,525.
At the time, that would have represented a nearly 10 percent growth in the Dow Jones industrial average and a nearly 8 percent gain in the S&P index.
However, given the markets’ growth during the past two weeks, those estimates are beginning to look a little too conservative. Based on Thursday’s close, those targets would now only represent a 7.4 percent jump in the Dow and a 4 percent climb in the S&P.
Still, another Cohen prognostication looks right on. Back in the fall she predicted a 11,450 year-end close for the Dow. With one day of trading remaining in, she remains only 8 points away from that goal. 
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Goldman Sachs
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