Wednesday March 7, 8:49 am Eastern Time
Goldman's Cohen Says Buy Stocks
NEW YORK (Reuters) - Goldman Sachs Chief Investment Strategist Abby Joseph Cohen told clients on Wednesday to use their cash to buy stocks, reversing the call she made last March.

Cohen, one of Wall Street's most respected strategists, raised the equity allocation in Goldman's model portfolio to 70 percent from 65 percent, and reduced the cash position to zero from 5 percent.

The fixed income component was left unchanged at 27 percent, she said in a note to clients. Goldman also recommends a 3 percent allocation to commodities.

``Many of the imbalances identified during the past year have now been largely redressed,'' Cohen said. ``Risk tolerance has been replaced by risk aversion.''

Moderate overvaluation of the S&P 500 has been followed by notable undervaluation, she added.



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