Former Goldman Sachs partner warns that U.S. stock valuations should cause investors to worry

On June 27, AbbyJoseph Cohen, a former partner at Goldman Sachs and now a professor at Colombia Business School, said that the high share price of U.S. stocks may conceal risks that investors should pay more attention to, especially in the labor market. "Valuations are basically saying everything is great," Cohen said in an interview on Friday. "When everything is priced in perfect condition, that's when investors need to worry," she warned. Cohen believes she is at an inflection point and expressed a particularly cautious attitude towards the labor market. After 2025 became one of the worst years in decades outside of a recession, the May jobs report showed that the labor market strengthened in many industries. June data will be released on July 2. Cohen said: "There are some things that are standard and straightforward, including corporate profitability, corporate balance sheets, and the potential strength of the economy, measured not only through GDP and industrial production, but also through job creation." We are not creating enough jobs right now."