Birinyi Says S&P Could Hit 1,700 This Year
Traders Magazine Online News, March 1, 2012
The S&P 500 could hit 1,700 by the end of the year, according to a new report released today by stock research firm Birinyi Associates.
So far, the stock market has been stronger this year than most investors anticipated, and judging by the dynamics of the rally, the fundamentals in the market and present investor sentiment, Birinyi believes investors should take a more aggressive posture.
The report, authored by Laszlo Birinyi, Jeffrey Yale Rubin and Kevin Pleines, found that a continued bull market could result in the S&P 500 reaching 1,700 later this year. It further speculated that 2012 could see gains similar to the bull markets of 1982 and 1990.
As in those years, the emerging bull market could reach a point of general acceptance by the public, as investors realize many of the concerns they had about growth are no longer valid. While the report admitted that declines in 2011 were unnerving, it said negative stances should be reconsidered.
"If we compare this market to 1982 and 1990, there appears to be a precedent for a strong rally from this point on," the report said. It also suggested the possibility that 2012 could repeat the performance of 1995, when the market started strong and continued to climb rapidly throughout the year.
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