The current bull market in U.S. stocks is following a course set during the 1980s that points toward further gains, according to Laszlo Birinyi, president and founder of Birinyi Associates Inc.
SS
THE FOOL DOES NT UNDERSTAND THAT THIS IS WAVE 2 - THE FAKE WAVE
WHAT WE SAW IN 80 S - ACTUALLY FROM 82 TO 99 WAS THE EXTENDED WAVE 5
HE SHOULD GO AND TAKE 101 LESSONS FROM EWI
The CHART OF THE DAY compares the Standard & Poor’s 500 Index’s advance since March 2009, when it dropped to a 12-year low, with its advance from August 1982 through August 1987. The S&P 500 more than tripled during the earlier period.
History suggests the S&P 500 will exceed 1,500 by August of next year after rising about 15 percent, Birinyi wrote yesterday in a report. The index is 1.8 percent away from surpassing this year’s peak of 1,363.61, set on April 29, and has almost doubled in the past 28 months.
Stocks will climb as “investors recognize that the market is for real,” Birinyi wrote. He referred to this acceptance as the third of four phases in a typical bull market.
The first two phases are an initial rally and a consolidation, when share prices meander, he wrote. The fourth happens when stock buyers go “all in,” or have as much invested as they can.
Birinyi, one of the first money managers to advise buying U.S. stocks before they bottomed two years ago, reaffirmed an estimate that the index will rise above 2,000 before the bull market ends. In January, he predicted that the S&P 500 would reach 2,854 on Sept. 4, 2013, based on historical precedent.
SS
THE FOOL DOES NT UNDERSTAND THAT THIS IS WAVE 2 - THE FAKE WAVE
WHAT WE SAW IN 80 S - ACTUALLY FROM 82 TO 99 WAS THE EXTENDED WAVE 5
HE SHOULD GO AND TAKE 101 LESSONS FROM EWI
The CHART OF THE DAY compares the Standard & Poor’s 500 Index’s advance since March 2009, when it dropped to a 12-year low, with its advance from August 1982 through August 1987. The S&P 500 more than tripled during the earlier period.
History suggests the S&P 500 will exceed 1,500 by August of next year after rising about 15 percent, Birinyi wrote yesterday in a report. The index is 1.8 percent away from surpassing this year’s peak of 1,363.61, set on April 29, and has almost doubled in the past 28 months.
Stocks will climb as “investors recognize that the market is for real,” Birinyi wrote. He referred to this acceptance as the third of four phases in a typical bull market.
The first two phases are an initial rally and a consolidation, when share prices meander, he wrote. The fourth happens when stock buyers go “all in,” or have as much invested as they can.
Birinyi, one of the first money managers to advise buying U.S. stocks before they bottomed two years ago, reaffirmed an estimate that the index will rise above 2,000 before the bull market ends. In January, he predicted that the S&P 500 would reach 2,854 on Sept. 4, 2013, based on historical precedent.
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