Photo: Bloomberg Television
Yesterday, we pointed out that 1995 was the last time stocks started a year without a 1 per cent decline or worse on a single trading day. That year, stocks surged 34 per cent.Stock market guru Laszlo Birinyi of Birinyi & Associates also pointed to 1995 today. He added that 1994 was relatively flat, kind of like 2011.
“We continue to be bullish and would encourage a more aggressive posture,” wrote Birinyi in his newsletter (via Bloomberg).
He thinks the S&P 500 could head to 1,700 some time this year.
“We are not insisting on a repeat, but do believe that investors should consider the possibility; 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,” he wrote (via MarketWatch).