Goldman Sachs Group Inc.'s Chief Investment Strategist Abby Joseph Cohen said the Standard & Poor's 500 Index will rise 14 percent by the end of next year to a record 1,675 ``as recession fears fade.'' ``U.S. stocks will offer moderate gains and will dramatically outperform bonds over a 12-month horizon,'' New York-based Cohen wrote in a report today. ``Recession will likely be avoided, due to strength in exports and capital spending by corporations and governments, and thanks to a vigilant and flexible Federal Reserve.'' Cohen was among the most bullish Wall Street strategists tracked by Bloomberg News with her estimate that the S&P 500 would surge to 1,600 by the end of 2007. Eight of 11 forecasters last month called for the benchmark for American equities to stage the biggest year-end rally since 1971. From yesterday's close, the measure would have to rise 8.7 percent to get there. ``Ongoing stresses'' on earnings stemming from turmoil in the financial system may be compensated by a ``competitive'' dollar, strong U.S. labor productivity and ``the favorable condition of corporate balance sheets,'' the strategist wrote. http://www.bloomberg.com/apps/news?pid=20601087&sid=aNjPtarN9CNo&refer=home I think, Abby Cohen and Jan Hatzius should meet and discuss together their macroeconomic outlook. As far as I can judge itÂ´s inconsistent BS !