She is famous for predicting the bull market of the 1990s early in the decade, and was named Institutional Investor's top strategist in 1998 and 1999.[4] CNBC referred to the market decline in March 2000 as "The Abby Effect" because she urged investors to reduce their exposure to internet stocks. However, she was criticized for adopting a more bullish stance in August 2000, a few weeks prior to the 9/11 attacks which triggered a recession.[9]
Like most of Wall Street, she failed to foresee the extent of the financial crisis and the great Bear Market of 2008. In December 2007, the Goldman Sachs team predicted the S&P 500 index would rally to 1,675 in 2008, the most optimistic of 14 Wall Street forecasters. This forecast was revised substantially lower in January 2008. The S&P 500 traded as low as 741 by November 2008. In March 2008 David Kostin became the bank's chief forecaster for the U.S. stock market.[10]
