Through the 1990s bull market, Abby Joseph Cohen was among the most closely watched voices on Wall Street. As Goldman Sachs’ chief US investment strategist, her annual market forecasts were covered as news events. Institutional investors tracked her target ranges for the S&P 500. Financial media treated her calls on equities with the kind of attention usually reserved for Federal Reserve statements.
Her consistency in calling the 1990s bull market correctly — in a period when many strategists turned cautious too early — established her reputation. Her story is also one of steady, decades-long advancement within one of the most competitive and hierarchical institutions in finance.
Background and Early Career
Abby Joseph Cohen was born in 1952 in Queens, New York. She attended Cornell University, where she earned a degree in economics in 1973, and went on to earn a master’s degree in economics from George Washington University.
Her early career was in economics and investment research. She worked as an economist at the Federal Reserve Board, then moved to T. Rowe Price, where she worked as an investment analyst. In 1990 she joined Goldman Sachs, where she would spend the rest of her career.
At Goldman she rose to become a partner, the firm’s chief US investment strategist, and later president of the Global Markets Institute — Goldman’s internal research and thought leadership arm.
The 1990s Bull Market Calls
Cohen’s reputation was built during the 1990s equity bull market — one of the longest in US history. Through a period when the S&P 500 rose from roughly 330 in 1990 to over 1,500 by early 2000, Cohen consistently argued that equities were appropriately valued or undervalued relative to earnings growth and interest rates.
Her analytical framework was grounded in earnings-based valuation models — specifically, comparing equity earnings yields to bond yields to assess whether stocks were attractively priced. When interest rates fell and corporate earnings grew, her model supported higher equity valuations.
In the mid-to-late 1990s, when debates about whether the market was in a bubble intensified, Cohen maintained her constructive view. Her calls were directionally correct through 1999. She became one of the most quoted strategists in financial media and one of the most recognizable women in American finance.
She turned more cautious in early 2000, reducing her year-end S&P 500 target, though the timing and magnitude of her shift drew criticism as the market began its significant decline.
Goldman Sachs Partner and Institute President
Beyond her market strategy role, Cohen’s career at Goldman reflected the firm’s partnership structure and internal advancement. She became a Goldman partner — a designation the firm has historically applied selectively — and later led the Global Markets Institute, which produces research on economic policy, financial markets, and regulatory frameworks for Goldman’s institutional clients and policymakers.
Her work at the institute extended beyond equity market calls into broader economic and policy research, including work on demographic trends in the global economy and on the economic costs of discrimination.
She has spoken and written extensively on the economic case for diversity in financial institutions and corporate leadership — framing the underrepresentation of women and minorities in senior roles as an economic efficiency problem with measurable costs to firm performance and capital allocation.
Recognition and Influence
Cohen was named by Fortune as one of the 50 Most Powerful Women in Business multiple times during the 2000s. She received the Alfred P. Sloan Award from the Financial Analysts Journal and has been recognized by multiple industry organizations for her contributions to investment analysis.
She has been a member of the Cornell University board of trustees and has been active in financial literacy and economics education initiatives.
A Note on Market Forecasting
Cohen’s career offers a useful case study in the nature and limits of market forecasting more broadly. Her sustained bullishness during the 1990s was well-reasoned and directionally correct over a long period. The 2000 inflection — when she reduced her target but not enough to fully anticipate the magnitude of the decline — illustrates the structural challenge facing any forecaster: models built on historical relationships can perform well in one regime and less well when the regime changes.
This is not a criticism specific to Cohen; it applies to essentially all long-horizon market forecasters. The lesson most often drawn from her career is that systematic, valuation-based analysis applied consistently over time has more predictive value than tactical short-term calls — and that the value of any single forecast is less than its coverage in financial media typically suggests.
Frequently Asked Questions
What did Abby Joseph Cohen do at Goldman Sachs?
She served as Goldman Sachs’ chief US investment strategist — responsible for the firm’s formal views on US equity market direction and valuation — and later as president of the Global Markets Institute, Goldman’s research and policy arm. She was a partner at the firm.
Why was she famous during the 1990s?
She was consistently bullish on US equities during the 1990s bull market and was directionally correct through most of the decade. Her year-end S&P 500 targets received significant media coverage, and institutional investors tracked her calls closely.
Did Abby Joseph Cohen predict the 2000 dot-com bust?
She reduced her year-end S&P 500 target in early 2000, signaling more caution. The timing and magnitude of her shift drew criticism, as the market declined far more sharply than her revised target implied. Her reputation was affected by the market’s subsequent performance.
What is the Global Markets Institute?
Goldman Sachs’ internal research institute focused on macroeconomic analysis, regulatory policy, and market structure research. It produces reports for Goldman’s institutional clients and engages with policymakers on financial and economic issues.
What school did Abby Joseph Cohen attend?
She earned her undergraduate economics degree from Cornell University (1973) and a master’s degree in economics from George Washington University.
