Laszlo Birinyi says the rally in the stock market can continue in 2010.
Birinyi, founder of research and money-management firm Birinyi Associates, says investors should expect the rally to move into next year as the economy continues to rebound.
Although some experts believe a correction will occur soon, Birinyi tells Bloomberg investors should not fear one.
The rally will not slow down so investors should place their money into “good stocks,” he says.
“I see a basic continuation of what we have seen for the last nine months," he says.
"There's going to be a drift back to stocks because people are realizing alternatives aren’t happening and the negative case isn't all that compelling,” Birinyi says.
“People continue to be skeptical,” Birinyi said. Stocks will continue to surge since “the economy is going to surprise us,” he said.
John Hussman, chairman of Hussman Econometrics Advisors, predicts that in 2010, stocks will decrease by a whopping 80 percent because debt delinquencies will grow, Bloomberg reported.
“Right now, the strongest force in the market is momentum going up.”
The dollar will also rise as the market rallies in 2010, said Barton Biggs, a hedge-fund manager at Traxis Partners, and Marc Faber, who publishes the “Gloom Boom & Doom” report, Bloomberg reported.
“History would suggest that after such a severe economic shock like we’ve just had the odds are that we’re going to have a pretty good burst of growth in 2010, 2011,” Biggs said.
“I don’t see any reason why we can’t have a further rally in the dollar and a further rally in stocks. And my guess is that the next move in both could be on the order of 10 percent,” Biggs said.
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