If the market continues at its current pace since the March lows, it could hit 1,280 on the S&P by the end of the year, said Laszlo Birinyi Jr., president at Birinyi Associates. He shared his market insights.
“I'm bullish on this rally," Birinyi told CNBC. "I think most people missed this rally—both professional and retail—that's why there's so much negative sentiment. It's not so much that they're negative—they realize the train has left and they're not on it."
"A month ago, I suggested markets are going higher—it’s been up 10 percent since then,” he said. "I don't think you can really forecast a market...so if we set some sort of parameter, it’s where it comes out."
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Birinyi said although he liked the financials before, they had a good upward move and investors may be “a little reluctant to go into the banks.”
“[But] I like Goldman Sachs a lot and Morgan Stanley had good news yesterday,” he said. "If you want to have some financial exposure, I think brokers are better than the banks. I think if you’re looking for some income, there are some stocks that pay some very handsome yields with very limited downside.”
Birinyi said Goldman Sachs could eventually trade at $200.
In the meantime, Birinyi said the U.S. dollar’s decline is a “continuation of what we’ve seen for some years.”
“There’s no stronger force in the market than momentum and you can’t forecast when that will end. It ends when it ends,” he said. “What’s throwing the markets for a loop is the quickness and aggressiveness of the decline. It’s not steady and not orderly.”
More Market Intelligence:
- Bad News: Stocks Are Stalling on Good News
- Falling VIX a 'Very Bad Sign': Market Expert's Warning
- Market Tips: Stocks at Back-End of Rally
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Disclosures:
No immediate information was available for Birinyi or his firm.
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