The Standard & Poor’s 500 Index may jump 20 percent to 1,050 over the next six to 12 months as investors buy stocks trading at low valuations, said Abby Joseph Cohen, Goldman Sachs Group Inc.’s senior investment strategist.The next phase of the rally due to buying on low valuations? Hmm. I'd say the bounce off the March lows to this point would be buying low valuations. Valuations aren't that low right now for many companies. In my mind, the next phase of a market gain would be due to improving economic data. There are some signs of this, but I'm not sure its enough to sustain a stronger move yet.
“You could see the market sustain at these levels,” Cohen, 57, said in a Bloomberg Radio interview. “We’re going to set a new trading range much higher than the trading range in February and March.”
In the mean time, we could be range bound for a bit as investors wait for the next phase of data. Like many, I've been expecting a slight pullback, but who knows right now.