Goldman Sach's chief investment strategist Ms Abby Joseph Cohen today raised her recommended equity weighting to 75 per cent from 70 per cent.
She also cut her bond weighting to 22 per cent from 27 per cent.
"Stocks are more attractive than before because they are undervalued and because of government initiatives intended to reduce the duration of economic dislocations," Ms Cohen wrote in a note to clients.
"Stocks are also attractive because of corporate share repurchases, cash on the sidelines, and confidence stemming from the resilience of the banking system and smooth reopening of the public markets following the attacks of September 11th" she added.
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Ms Cohen maintained a three per cent weighting in commodities while keeping cash at zero.