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Abby Cohen and Edward Yardeni disagree over the effetcs of y2k. Cohen is an optimist.
This appeared in BUSINESS WEEK (May 22).
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Cohen expects profit growth to accelerate as the global economy improves this year. And she equates fears of rising interest rates and Asia's economic problems with "bad weather" that will not throw "Supertanker America" off its course. In an Apr. 27 report she wrote: "Essential to future stock price performance is the longevity of the profit expansion which we expect to continue throughout our forecast horizon, which now extends until the end of 1999." . . .
Her investigations into the Year 2000 bug have concluded that many companies have the problem well in hand. Her main concern lies in the chance that companies will halt capital spending in technology once the problem is solved. But she says that even if capital spending slows after the Year 2000, "we don't think it is something that creates a recession by any stretch of the imagination."
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