Tags: Birinyi | Too | Many | Pessimists | Overstating | Economy | Woes

Birinyi: Too Many Pessimists Are Overstating Economy's Woes

Thursday, 07 Jul 2011 08:55 AM

The economy isn't in as bad as shape as a lot of people say it is, and stocks are unlikely to take their cue from pessimists during the second half of this year anyway, says Laszlo Birinyi, head of Birinyi & Associates, a stock market research firm.

"You'd be surprised how many good things are happening in the economy," Birinyi tells CNBC.

"I've always argued the negative case is always more articulate, it's always more intelligent, it's always more compelling because it looks at the now. The market looks ahead," says Birinyi.

"I could come up with all sorts of potential disasters but looking at what's going on in the market, the market doesn’t seem to be saying anything of this will happen."

_________________________________________________________
Editor's Note: Myth: You’ll Never Achieve Life-Changing Prosperity
Don’t listen to ANYONE who says you’ll never have a genuine chance at achieving life-changing prosperity. Get Your New Millionaire Success Kit 100% FREE. Click Here.
__________________________________________________________
That doesn't mean investors should jump into stocks without cherry picking and buy on hopes that rising water will lift everything up, Birinyi adds.

Some experts warn that government policies have taken their toll on stocks, pointing out that the Federal Reserve's quantitative easing, a $600 billion bond buyback designed to fuel faster economic recovery by pumping up stock prices, has also weakened the dollar.

Stocks may go higher if loose monetary policy continues, but the value of those equities will be less in real terms if the dollar is weaker and inflation climbs, says Peter Schiff, CEO & Chief Global Strategist at Euro Pacific Capital.

"Our money is losing value and we are simply measuring stock prices in cheaper money, so it looks like stocks are going up but really it's our money going down, and so people might on paper be richer but in reality they are going to be poorer," Schiff says.

© 2017 Newsmax Finance. All rights reserved.

   
1Like our page
2Share
StreetTalk
The economy isn't in as bad as shape as a lot of people say it is, and stocks are unlikely to take their cue from pessimists during the second half of this year anyway, says Laszlo Birinyi, head of Birinyi Associates, a stock market research firm. You'd be surprised how...
Birinyi,Too,Many,Pessimists,Overstating,Economy,Woes
314
2011-55-07
Thursday, 07 Jul 2011 08:55 AM
Newsmax Inc.
 

Newsmax, Moneynews, Newsmax Health, and Independent. American. are registered trademarks of Newsmax Media, Inc. Newsmax TV, and Newsmax World are trademarks of Newsmax Media, Inc.

NEWSMAX.COM
MONEYNEWS.COM
© Newsmax Media, Inc.
All Rights Reserved