Goldman Sachs and the Crystal Ball

Abby Joseph Cohen is the chief investment strategist at Goldman Sachs. By all accounts, she is a very smart person. She takes in information and determines how the economy is doing at a particular point in time. She figures out how the Market is doing at a particular point in time. She even figures out the short-term prospects for the Market.

But, it smacks of a carnival sideshow trailer with a crystal ball and velvet curtains when Ms. Cohen tries to predict where the Market will be in a year from now. She cannot possibly know. It changes from week to week and can mislead investors.

And how can I be sure of that? Three weeks ago Ms. Cohen claimed the S&P to be at 1680 by year-end after claiming earlier than it would reach 1680 by the end of the summer. Now, it's at 1480 as I write this. Oops.

Tomorrow - BIG CHANGES! Get ready!