Tags: Birinyi | Market | Stock | Picking

Birinyi: Market is Becoming Ripe for Stock Picking

Thursday, 11 Aug 2011 09:14 AM

Sell-off after sell-off in equities markets have sent stock prices down so far to the point that more and more bargains are popping up, says Laszlo Birinyi, of Birinyi Associates.

Don't buy on hopes of a rising tide, as nothing is going to push up stock prices as a whole, but good cherry-picking skills can pay off.

"I want to go down to the lowest level, which is the hardest level, and pick individual stocks," Birinyi tells CNBC.

"The markets create some good opportunities, and I think that's what you should be looking at here and not be consumed by the level of the market."

Birinyi adds he'll avoid underperforming financial stocks, which have been battered on fears that debt woes in parts of Europe can threaten financial sectors everywhere.

He's staying away from healthcare companies as well.

"I've been hearing about the pipeline and dividends for 20 years."

The Standard and Poor's decision to downgrade U.S. credit ratings coupled with ongoing concerns over debt issues in Europe and in the United States have many running to gold as a safe haven.

Gold prices have broken $1,800 an ounce amid continued volatility and fears that currencies are a dangerous play.

"The race to debase currencies is on," says James Dailey, who manages $185 million at TEAM Financial Management, according to Bloomberg.

"Gold will continue to appreciate until there is a fundamental shift in the government policies."

Others agree that the precious metal is due for more gains.

"The overall problems in the U.S. are far from over, and the appetite for haven assets like gold is very strong," says Viral Shah, vice president at Geojit Comtrade in Mumbai, Bloomberg adds.

Investors "want to opt out from the other asset classes, and that is always going to be to the benefit of gold."

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Sell-off after sell-off in equities markets have sent stock prices down so far to the point that more and more bargains are popping up, says Laszlo Birinyi, of Birinyi Associates. Don't buy on hopes of a rising tide, as nothing is going to push up stock prices as a whole,...
Birinyi,Market,Stock,Picking
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2011-14-11
Thursday, 11 Aug 2011 09:14 AM
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