Birinyi: Stocks May Double by End of 2013

By Dan Weil

Investment guru Laszlo Birinyi says stocks may double within the next 2½ years. At a minimum, the Standard & Poor’s 500 Index will gain 31 percent by September 2013, he tells CNBC. That would mean a move to at least 1,744 from 1,331 currently.

“There was an extraordinary start to this bull market, and when you have starts similar to this, you end up with some very substantial moves,” says Birinyi, president of Birinyi Associates. “We’re out there and very comfortable being bullish.”

The S&P has nearly doubled from its March 2009 low (667), though it remains down 16 percent from its October 2007 high (1,576).

Birinyi’s forecasts are based on technical indicators.

Laszlo Birinyi

“Looking at the market’s history, which we found to be a useful guide in the past and has been a useful guide for the last two years, we’re going to continue to dance with who ‘brung’ us,” he says.

Birinyi recommends buying Exxon Mobil, Prudhoe Bay, Ralph Lauren, Priceline, Cummins and Hermes.

Others are bullish on stocks too.

“The economy appears to be strengthening, the momentum seems to be shifting, rates are trending higher, and riskier assets like stocks are gaining traction,” Kevin Giddis, executive managing director at Morgan Keegan tells Marketwatch.

“How long this all will last is anyone’s guess, but the facts are facts, and this story is becoming a compelling one.”