Bloomberg Talks Abby Joseph Cohen, professor at Columbia Business School, Talks Fed Expectations
Jan 28, 2026
Abby Joseph Cohen, Columbia Business School professor and former Goldman Sachs chief U.S. investment strategist, shares market-minded observations. She discusses why U.S. equities still look compelling. She weighs valuations against earnings support. She flags policy risks from trade, fiscal moves and a weaker dollar. She recommends diversifying beyond U.S. leaders into markets like Japan, Korea and India.
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Bad Calls Yet Long-Run Gains
- Tom Keene jests that Abby made terrible calls in 2008 yet still outperformed nominal GDP over time.
- The exchange highlights market resilience and long-run gains despite timing errors.
U.S. Strength Masks Valuation Vulnerability
- The U.S. economy remains fundamentally strong due to decades of investment in education and science.
- Current market gains reflect corporate profits but valuations leave little cushion for disappointments.
Earnings Support Now, But Risks Loom
- Investors are focused on corporate profits and cash flow, which supports recent market performance.
- However, intermediate and long-term prospects look cloudier because of valuation overhang in some sectors.