Abby Joseph Cohen, former chief US investment strategist at Goldman Sachs and now professor at Columbia Business School, warns that US equities are priced to perfection with no margin for error. She points to a softening labor market and warning signs in consumer spending patterns that will eventually impact corporate earnings. The strategist also raises concerns about AI investments, arguing that the investment cycle may be running ahead of the revenue cycle. Despite these near-term concerns, she maintains a long-term positive outlook on US equities, advising investors to focus on companies already generating meaningful revenue from AI deployments.
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