Goldman's Cohen Still Sees S&P 500 of 1650 in 12 Months

Goldman Sachs chief equity strategist and staunch bull Abby Joseph Cohen this morning reiterated her 12-month target for the S&P 500 of 1650, which would be a 25% gain in the next year. Cohen, however, is no longer mentioning that in October she predicted that the S&P's would be at 1575 value by the end of 2000.

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She said that despite warnings today from prominent technology companies (unnamed in the comment, but presumably Gateway (GTW Quote) and Altera (ALTR Quote)), Goldman's technology analysts still see reasonably strong demand.

Goldman's model, which continues to suggest a 35% combined weighting in technology and telecommunications, is nearly in line with the actual market weighting of 32%, according to Goldman. In March, the market's weighting in technology/telecom had risen to 45%. She currently recommends overweighting technology stocks but underweighting telecommunications stocks.

She acknowledges the macroeconomy is slowing to a more sustainable, slower rate of demand, although believes that the transition period has been "confusing and worrisome" to investors.