March 5, 2013

Birinyi’s Bull-Market Picks

Buy mining, technology stocks, famed money manager says

People get ready, there's a train a-comin'.

Famed money manager Laszlo Birinyi channeled Curtis Mayfield Tuesday morning when commenting about the Dow’s new record high.

Lazlo Birinyi (Photo: Bloomberg)“People are now starting to realize that it is a bull market,” Birinyi (left), president of Birinyi Associates, said in an interview with Bloomberg Radio. “It’s not going to come back, you’ve missed the train, and the train still has a long way to go. But you better get on it.”

Birinyi, who was one of the first money managers to call the bottom of the bear market and the beginning of the bull market in March 2009, said investors should buy commodity and technology shares.

The Dow Jones Industrial Average set a new record, blowing past the old mark set in 2007. While consumer staples and health-care shares have led the almost 8% advance for the Standard & Poor’s 500 Index in 2013, the network notes Birinyi said technology, materials and energy stocks are the best choices today.

“Banks may have run their course,” he added. “The strong economic stocks are where we’re starting to find ways to play the market.”

He pointed to said Salesforce.com (CRM), the largest maker of online customer relationship management software, an example of a well-performing cyclical stock. Bloomberg data shows it has gained 30% in the past 12 months, compared with a 13% advance in the S&P 500, as earnings exceeded analyst projections.

Birinyi earlier this year said the S&P 500 had a more than 50% chance of climbing past 1,600 this year. The index is within 3% of surpassing its 1,565.15 record set in October 2007 after closing at 1,525.20 yesterday.

“We think there’s that possibility here, and if not we still have a very good market,” he said, according to Bloomberg. “We’re in the fourth leg, which is where you get some really good moves.”

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