While some investment strategists say the bull market in stocks has run its course, don’t count Laszlo Birinyi and Byron Wien among them.
Economic recovery and rising profits will likely send stocks higher next year, they say. The Standard & Poor’s 500 Index already has soared 67 percent from its March lows.
“I think that as far as the market goes, the negative case is always more articulate, more intelligent, more compelling,” Birinyi, president of stock research firm Birinyi Associates, tells The New York Times.
“(That’s) because it’s focused on what you can see now — on what’s right in front of you,” he said. “The market, meanwhile, is telling you what’s ahead of you.”
As for Wien, vice chairman of Blackstone Group, he’s been bullish for months and isn’t changing his tune.
“The market is more likely to increase in value next year than decrease,” he told The Times. “It won’t go up in a straight line, but I expect it will go up for several years.”
To be sure, given the market’s recent surge, Wien sees a correction of 10 percent or more as quite possible.
“A correction of some sort wouldn’t be unexpected now,” he said. “It could be a healthy thing.”
Not everyone is so enthusiastic about stocks.
Pimco star bond fund manager Bill Gross writes on the firm’s web site: “The six-month rally in risk . . . is likely at its pinnacle. Out, out, brief candle.”
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