Greenspan legacy, data quality, and cautious equity outlook (with Tom Keene; Lisa Mateo)

Cohen discusses Alan Greenspan's focus on long-term economic structure and data quality. She warns that current high valuations mean investors should be cautious, as markets are 'priced to perfection.' She highlights persistent inflation risks from underfunded data collection and structural economic shifts, and notes insufficient job creation as a concern.

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RUT

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Columbia Business School 3.0
Business School
Abby Joseph Cohen 8.5

Greenspan legacy, data quality, and cautious equity outlook (with Tom Keene; Lisa Mateo)

ndx

Cohen states valuations say 'everything is fabulous' and 'priced to perfection,' which implies a cautious or negative near-term view on richly valued tech-heavy indices like NDX.

yields

Cohen's focus on persistent inflation risks from underfunded data collection and structural shifts suggests yields may remain elevated and rangebound in the medium term.

Abby Joseph Cohen

Greenspan was not interested in short-term market moves; he focused on underlying economic structure and data quality.

She recalls conversations with Greenspan about technological changes in the 1990s and how data collection was not capturing the newer, faster-growing segments of the economy.
Abby Joseph Cohen

Current economic data (GDP, etc.) are samples; we won't know the real numbers for years. If samples are based on old industries, we mislead ourselves.

She praises Kevin Warsh for setting up task forces on data analysis and data quality, noting the BLS has been underfunded for years.
Abby Joseph Cohen

Valuations basically say everything is fabulous. When things are priced to perfection, investors need to be concerned and careful.

She references her background as chair of the CFA Institute board, emphasizing digging through numbers and valuation.
Abby Joseph Cohen

There are always differences, but standard basics include corporate profitability, balance sheets, and job creation. We are not creating sufficient jobs right now.

She contrasts current conditions with historical norms, noting structural disruptions in the global economy.
Abby Joseph Cohen

Personal finance education is a fabulous idea; the sooner the better, not just for young people but also for middle-aged people.

She mentions a program on entrepreneurship for high school students at Cornell Tech on Roosevelt Island.
Abby Joseph Cohen

Many people are responding to sluggish job and wage growth with stress. Business and political leaders need to focus on growing the economy, not just rearranging the slice of the pie.

She acknowledges a very significant distortion in the slice of the pie over the last 10-15 years.

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