Investing Guru Laszlo Birinyi Sees A Big Stock Market Rally By The Halfway Point Of This Year
That's around 6% higher than the 1,800 level we're at today.
"Short sellers have probably learned their lesson" from 2013, which was a banner year for stocks, Birinyi said.
Birinyi seemed unfazed by the relatively brutal start of this year. Tensions in emerging markets and worries about macro issues in China have helped stifle the S&P 500 to its worst start since 2010, Bloomberg notes. From the report:
Birinyi, the founder of Birinyi Associates Inc. and one of the first analysts to advise clients to buy when stocks were bottoming after the 2008 financial crisis, said in a phone interview Feb. 7 that the benchmark gauge for U.S. equities will increase almost 6 percent by July. It fell 5.8 percent in the three weeks staring Jan. 15, losses he said signal healthy skepticism that set the stage for more gains.
"I don't like when the market just shrugs these things off," Birinyi said from Westport, Connecticut. "It's OK to just stop and take a deep breath. The market should have some sort of a negative reaction when you have problems in Turkey and Argentina. That didn't make me uncomfortable."
"We've had a little bit of a detour and the road isn't as smooth as it has been, but we still think the rally is intact," Birinyi told Bloomberg.