Tags: Birinyi | S&P 500 | 2100 | stocks

Birinyi: S&P 500 Will Hit 2,100 By Year-End

By    |   Tuesday, 08 July 2014 08:31 AM

The stock market's climb to repeated record highs in recent weeks hasn't dented the enthusiasm of Laszlo Birinyi, president of Birinyi & Associates.

He sees the S&P 500 reaching 2,100 by year-end. That would represent a 7 percent increase from Tuesday's close of 1,963.71.

To be sure, the market's not full of attractive buys at the moment, Birinyi tells CNBC.

Editor’s Note:
Retire 10 Years Earlier With These 4 Stocks


"There are no bargains right now. . . . It's like 3 p.m. on Black Friday at Wal-Mart," he asserts. "But there are opportunities that will present themselves. For example, airlines were down on Wednesday, so we bought some."

Now is a good time to dump your losers. "I would be pruning my portfolio. I would be going through, looking for things that joined the party just because there was a party going on," Birinyi suggests.

"Primary among these would be IBM."

But while Birinyi has dumped his IBM stock, he's sticking with Intel, Microsoft and Apple.

"Don't sell your winners," he insists. "The biggest mistake I've made in the last two, three years is selling stocks that have fully appreciated and found out that — whoops."

Birinyi doesn't believe in all the hoopla about a market correction coming.

"Corrections are a function of events. Corrections are a function of downgrading of U.S. debt, Russian debt crisis, long-term capital. They're not organic, and so therefore you cannot predict corrections," he explains.

"To me, there's too many people walking around saying it's going to rain. I want to listen to somebody who doesn't want to sell me an umbrella. That's the person I would listen to."

Some investors say stocks are vulnerable to a quicker-than-anticipated interest-rate increase by the Federal Reserve. "Rates are going to go up before people expect," Tom Stringfellow, chief investment officer of Frost Investment Advisors, tells Bloomberg.

"And when rates do go up, I expect some sort of a knee-jerk reaction. But I don't believe for a moment that the Fed's going to raise rates at a speed that derails this stable environment."

Editor’s Note: Retire 10 Years Earlier With These 4 Stocks

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The stock market's climb to repeated record highs in recent weeks hasn't dented the enthusiasm of Laszlo Birinyi, president of Birinyi & Associates.
Birinyi, S&P 500, 2100, stocks
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2014-31-08
Tuesday, 08 July 2014 08:31 AM
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