The stock market’s weakness in recent sessions hasn’t dented the bullishness of investment guru Laszlo Birinyi.
“I am not of the view that we’re going into a 20 percent downdraft,” he says. “We are buying to take advantage of this weakness.”
“Emotion and political circumstances are dictating the short-term move, and understandably,” said Birinyi.
“But ultimately it comes down to good companies and proper valuations, and I don’t think there’s a big issue,” he told Bloomberg.
U.S. corporate profits remain strong, and valuations are still attractive, he says.
Analysts anticipate a 17 percent earnings gain for S&P 500 companies this year, putting the index’ price at a moderate 13.2 times earnings, according to Bloomberg data.
The S&P may gain more than 10 percent by year-end, according to Birinyi.
He says he’s been buying shares of Chipotle Mexican Grill, Freeport-McMoRan Copper & Gold and Oil Services HOLDRS Trust, an exchange-traded fund.
Other experts say the market is likely to avoid a plunge too.
"It's a very tough call to make, but I come down on the side that it's more likely to be a correction," Stu Schweitzer, global markets strategist at JPMorgan's Private Bank, told the Associated Press.
© 2017 Newsmax Finance. All rights reserved.