“We are not insisting on a repeat but do believe that investors should consider the possibility,” he wrote of the parallels. “In 1995, the consensus trade was higher yields, today it is tepid economic growth and the market is suggesting—perhaps insisting—an alternative to that consensus.”
Biryini advised investors to look at sectors that can benefit from a growing economy, such as industrials, energy and materials. Still, he said picking individual stocks is his preferred method of investment, pointing to GM, BlackRock, People’s United Financial, Research In Motion and France’s Hermes as his top picks.
Research In Motion?!
Birinyi argues that while the stock is a “riskier pick,” the BlackBerry maker “still has brand and the franchise.”
His top picks in 2011 were Prudhoe Bay, Cummins, Ralph Lauren, Priceline.com and Hermes.
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