Goldman Sachs’ Abby Joseph Cohen says the improving economy makes for a bullish outlook for equities. Cohen tells Bloomberg Surveillance that with the economy growing at about 3% and corporate earnings growing in the high single digits, she thinks the S&P 500’s fair value will be about 2150 a year from now.

Cohen also talks about the improvement in the US debt picture. The U.S.’s deficit/GDP ratio was in double digits during the Great Recession; now it’s around 2% to 3%, she says.