Do you realize this guy plays the market based the historical profile/patterns of a typical bull market? That's it! On February 16th, 2011, his lowest prediction was that the S&P would rise by 31% by September 2013. His upside prediction was more than double in the next 2 and 1/2 years. At the time of this interview, the previous close on the S&P was 1,328. Through today the market is up around 40% from that interview. Although he had a huge range, he called a huge run and it happened.
On January 2011, Birinyi said the average length and size of bull markets suggested the S&P would rally to 2,854 on Sept. 4, 2013. "That number hasn't gone away," Jeffrey Yale Rubin, director of research at Birinyi Associates, said during a phone interview. "It's not like Birinyi is lowering the target, because that's way out there, almost to 2014.
Birinyi (or Kermit the Frog -- if you have not heard this guy talk before please do so) has been a huge beneficiary of QE. But that's not why he was long the market. Can you believe this sh#!!? He and other folks at his firm make huge upside calls and CNBC and Bloomberg provide the platform to sell them. This guy has made himself a lot of money going back to 2009 -- I believe he was comfortable buying in March of that year. You have to give him credit for that, but it really pi&&es me off that this guy simply makes money based on the notion that history repeats itself when it comes to the stock market, particularly when this bull market is extremely unique. Good job Bulls on making Kermit a lot of money....
They have nothing else to base their calls on. They're creating a self-fulfilling prophecy by trying to influence trader sentiment, based on these historic trends. That's not rocket science. I wish they'd take Birinyi, Thomas Lee, and Jeremy Siegel off CNBC as guests. They drag these guys on every week or two, and they say the same thing over and over again. I'm sick of all of them.
I'm sure they'd call a geopolitical event or act of terrorism a buying opportunity, because that's what they're paid to do. People need to realize they will never ever say the market is going down.