Investment guru Laszlo Birinyi said that the economy has bottomed, which will help to push stock prices higher.
“Most people think the economy has indeed made a bottom with perhaps a sluggish and stalled recovery,” he told Bloomberg TV.
“The general consensus is the worst is behind us, and I don’t really like to fight the consensus.”
Corporations are pursuing policies to improve their performance, Birinyi said. “A lot of companies have taken action to get their costs under control.”
So it’s no surprise that “analysts, for the first time in 12 months, are actually raising instead of cutting earnings estimates,” he said.
“The good news is they’re doing it recently, which means they’re really on top of the situation,’’ Birinyi said. “They’re not lagging by weeks and weeks, as they did over the last couple months.”
So where are stocks headed?
“I think the market is going to continue to struggle in a positive direction,” he said.
“I think the market’s going to continue to have a great deal of volatility, because there is just so much uncertainty all over the world. But our view is that the market will end higher at the end of the year, and we’re constructive.”
Not everyone is bullish on stocks.
"Could we see a new low? Who's to say that we couldn't?" David Rosenberg, chief economist at Gluskin Sheff, told CNBC.
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