Famous Goldman Sachs Group Inc. (NYSE: GS) market analysts Abby Joseph Cohen has forecast that stocks could rise 10% to 15% in 2013. Given the market's performance over the past three years, that should be possible. While the federal government's failure to settle issues could hurt the economy, Cohen says that underlying fundamentals are fine. CNNMoney reports that Cohen believes:
Americans are carrying less personal debt as a percentage of their income than anytime since the 1990s, Cohen said. Large corporations have excess cash thanks to strong fundamentals and because they've been able to borrow money in an environment of low interest rates.
Moreover, the U.S. has been reducing its debt relative to its growth domestic product during the past few years. She noted that debt was 4% of GDP for the fiscal year that started in October compared to an 11% ratio in 2008.
Douglas A. McIntyre
Filed under: 24/7 Wall St. Wire, Economy Tagged: GS