Biggest Rally in 76 Years Not Dead as Seers See Gains

Laszlo Birinyi will never forget the moment a year ago when the last ounce of confidence disappeared. Everyone from billionaire Warren Buffett to New York University Professor Nouriel Roubini was convinced that the economy was in a free-fall, that exploding deficits would devastate the dollar and that home prices were heading down as much as 20 percent.

“At turning points, the mood is always in one direction,” says the 66-year-old Birinyi, who characterized the “total conviction” of pessimists as the start of an advance that would end up making Barack Obama’s first year in office the best for shareholders in 76 years. What’s more, the Standard & Poor’s 500 Index, which gained 70 percent in the past 12 months, is nowhere near its peak in a rally that may persist through the next presidential election, he says. (more)