Monday, December 01, 2008

Birinyi Associates Head Says Stocks Have Bottomed

This guy predicted the fall so he should be smart enough to predict the bottom as well. He mainly sites the low number of stocks rated "Buy" and the high negative investor sentiment as indicators that the bottom has been put in.

“The market will not again visit 750 on the S&P,” Laszlo Birinyi, who predicted the rout in financial stocks, wrote in a report today titled “The Stock Market Has Bottomed.” While he said that doesn’t mean the benchmark index for American equities is poised to rally, researchers at Bespoke and UBS said it may.

The S&P 500 might climb 17 percent in the next three months, based on the eight five-day rallies that were bigger than the 19 percent advance completed on Nov. 28, Bespoke wrote in a report. The S&P 500 rose 5.6 percent on average in the next month and 17 percent in the next three months, according to Bespoke, whose founders, Justin Walters and Paul Hickey, once worked at Birinyi.

Stocks will post “higher double-digit returns” in 2009, UBS AG’s global strategist forecast.

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