Stock Valuations Should Worry Investors, Abby Joseph Cohen Says

Abby Joseph Cohen, a Columbia Business School professor and former Goldman Sachs partner, warns that high stock valuations may conceal significant risks. She suggests that these elevated prices increase vulnerability to economic shifts, potentially leading to severe market reactions following minor disappointments. Cohen emphasizes that investors should pay closer attention to these risks, particularly within the labor market, as current valuations could mask underlying instabilities that threaten overall market stability during unexpected economic downturns.