When stock market guru Laszio Birinyi told bubblevision today that SP 3200 would be reached by 2017, he’s argument was essentially to keep on keeping on:
“What we’re really trying to tell people is stay with it, don’t let the bad news shake you out…There’s no reason we can’t keep on going,” he said.
That got me to thinking about when I first ran into Birinyi at Salomon Brothers way back in 1986. He was then a relatively underpaid numbers cruncher in the equity research department who was adept at making the bull case. Nigh onto 30 years later he has become a rich man crunching the numbers and still making the bull case.
Indeed, I don’t ever recall when he wasn’t making the case to be long equities, and as the chart below shows, you didn’t actually have to crunch the numbers to get there. Just riding the bull from 200 in January 1986 to today’s approximate 2100 on the SP 500 index computes to a 8.4% CAGR and a 10% annual gain with dividends.
^SPX data by YCharts
Even when you take the inflation out of it,