Those who say this isn't a bull market are just plain wrong, says Birinyi Associates CEO Laszlo Birinyi, who expects the market to continue to climb for the next couple of years.
"Anxiety is in the part of the people who have missed the rally," Birinyi told CNBC. "And they're trying to talk the market down so that they can get back in."
“The market can adjust and adapt,” Birinyi says. “This time it’s taken a little bit longer.”
Right now, Birinyi says, the market is in a phase of getting better, which “makes it hard to pick the best of the best.”
He advises investors to buy individual stocks, not funds, especially those of exchange-traded variety.
“We find that (on) 25 percent of the trading days, even the SPDRs don’t track the S&P by 20 basis points or more.”
Birinyi also finds exchange-traded funds (ETFs) “terribly inefficient,” noting that returns for investors who bought an oil ETF in the beginning of the year are now flat while oil as a commodity is up nearly 40 percent.
Birinyi recently added shares in Wells Fargo, JP Morgan Chase, BlackRock, Goldman Sachs, Deere, Hermes, and Energy Drillers to his portfolio.
Emerging markets may offer the only “secular bull market” among global stocks, says Morgan Stanley’s chief Asian and emerging-markets strategist Jonathan Garner.
“Asia and other emerging markets increasingly are driving the global economy and their share of GDP has risen throughout the crisis,” Garner told Bloomberg.
“The earnings recession that we’re getting in Asian emerging markets is far smaller than that of the developed world.”
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