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We’re ‘Absolutely’ in a Bull Market: Stock Picker

Thursday, 11 Jun 2009 | 12:26 PM ET

We’re “absolutely in a bull market” and U.S. stocks will rally for another couple of years, said Laszlo Birinyi, president of Birinyi Associates. He offered CNBC his top picks now. (See his recommendations, below.)

Message From a Bull
Flat performance from stocks this month doesn't bode well for a lasting bull market but investors should still get in, with Laszlo Birinyi, Birinyi Associates president.

Birinyi said while investors think that the market "climbs a wall of worry," the market actually fights against a "wall of anxiety."

“Anxiety is in the part of the people who have missed the rally,” Birinyi told CNBC. “And they’re trying to talk the market down so that they can get back in.”

Second Opinion:

He advised investors to look at individual stocks and not groups or overviews.

“One of the things we’ve found is that ETFs are terribly inefficient,” he said. “We’re all sold on the idea that if you liked oil at the beginning of the year, and you bought the USO ETF — it’s flat. Oil’s up almost 40 percent! We find that 25 percent of the trading days, even the SPDRs don’t track the S&P by 20 basis points or more.”

Recommendations:

Wells Fargo

JPMorgan Chase

BlackRock

Goldman Sachs

Deere

Hermes

Energy Drillers

Disclosure:

Birinyi and/or his firm owns shares of the companies mentioned above.

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Disclaimer

  Price   Change %Change
BLK
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DE
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GS
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JPM MLP ETN
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USO
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WFC
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