Tags: Laszlo Birinyi | stocks | bull market | higher

Birinyi: We're In a 'Protracted Bull Market'

By    |   Thursday, 30 May 2013 01:33 PM

The current stock market rally still "has a long way to go," said Laszlo Birinyi, founder and president of Birinyi Associates.

"We think we're in a protracted bull market," said Birinyi told USA Today. He said that bull markets take place in four stages, and that we're in the final phase, or the exuberance phase.

"At the end of the bull, in the fourth phase, is when everybody realizes the train's not coming back, that they've missed it," he said. "We haven't gotten there yet."

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Birinyi said stories in the media regarding the stock market are too negative.

The Standard & Poor's 500 Index has risen 3.7 percent so far in May, set for a seventh month of increases, according to Bloomberg, for the longest winning streak since September 2009.

The S&P 500 has skyrocketed 145 percent since March 2009, driven by better-than-estimated corporate earnings and three rounds of bond purchases by the Federal Reserve.

At the beginning of the year, with the S&P 500 trading around 1,425, or almost 14 percent below Wednesday's close of 1,648, Birinyi told clients he thought the market could climb to 1,600, USA Today reported.

When the market reached that level, he raised the guidance to 1,700. Most recently, he raised it to 1,900.

A concern is the S&P 500 overheating and climbing to 1,700 too quickly. Birinyi said he will re-evaluate the market's signposts when it reaches 1,700.

"The poker game is not over when the ashtrays are emptied and the beer cans are thrown out," Birinyi told USA Today.

"The poker game is over when the guy who has won all your $50 and $100 bills starts sliding them off the bottom of the pile and puts them in his back pocket. The market works the same way."

Birinyi, who added that he's more focused on individual equities instead of the broader market, also provided his favorite stock: Priceline.com.

Meanwhile, other experts also have lofty expectations for the stock market.

BlackRock CEO Larry Fink thinks the current bull market has another five or six years to go. Investors could experience annual returns of 8 percent to 10 percent during that period, he tells CNBC. This could put the Dow Jones industrial Average above 28,000 in 2019.

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The current stock market rally will continue to charge higher, said Laszlo Birinyi, founder and president of Birinyi Associates, Inc.
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2013-33-30
Thursday, 30 May 2013 01:33 PM
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