Wednesday, January 2, 2013

Big market surprise coming in 2013!




This is your captain speaking.  Better fasten your seatbelts coach passengers.  Make sure those whatevers are in the upright position.  Bloomberg reports that the Standard & Poor’s 500 Index will probably surpass its record high in 2013 as bears capitulate and the lure of a four-year bull market pulls “everyone in the pool,” according to Laszlo Birinyi.

Expansion in U.S. housing, recovering markets in Europe where bank shares have rallied 36 percent since June and buying by individual investors will push the advance in equities to its fourth and final stage, “acceptance,” said Birinyi, the president of Birinyi Associates Inc. The benchmark gauge for American equity is within 10 percent of its record after gaining 107 percent since March 2009, data compiled by Bloomberg show.

Birinyi, the former Salomon exec, is sticking to the bullish forecast he has given to clients of his Westport, Connecticut-based research firm since stocks hit a 12- year low following the credit crisis four years ago. The 69- year-old money manager says the bull market that began in March 2009 resembles advances that pushed equities up more than threefold in the 1980s and fourfold in the 1990s.

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