NEW YORK ( TheStreet) -- Laszlo Birinyi, founder and president of Birinyi Associates, told the CNBC's "Fast Money Halftime" traders he still thinks the S&P 500 is headed to 2,100 by year's end. It is currently around 2,060.
"Everything still seems pretty much in sync," Birinyi said Monday, referring to economic indicators, investor sentiment and the state of the market sectors. However, the market is likely to get more volatile next year as it enters the next stage of a bull market, which will feature rising interest rates.
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Because of this expected rate hike, which he sees coming sometime in 2015, he has a "very light weighting to bank stocks" and is long the brokerage firm companies. Birinyi sees 45% of the gains in the financial stocks coming within the first two months of a bull market. With the U.S. market is in its fifth year of a bull run, he does not like the risk-to-reward opportunity in most financial stocks.
While Birinyi did say investors who were fortunate enough to buy stocks after the big October selloff should consider taking some profits, he is largely sticking with his favorite positions headed into next year. Some of these include 3M Company (MMM) , Alaska Air Group (ALK) , Restoration Hardware (RH) , Blackstone (BX) , Union Pacific (UNP) , Kimberly-Clark (KMB) , Eli Lilly (LLY) and Apple (AAPL) .
Conversely, he does not want to own McDonald's (MCD) , which just reported weaker-than-expected comparable-store sales growth and is lower by 4% on the day as a result. Also, "I don't want to touch the oil stocks," Birinyi said.
There's two major headwinds in the oil market, said Josh Brown, CEO and co-founder of Ritholtz Wealth Management. The first is the eventual dividend cuts that even the high-quality companies may have to issue. The second is that many of the lower-quality oil companies will have trouble securing financing with oil prices so low. If investors are tempted to buy into this selloff, stick with the high-quality names, he said.