Are Stocks Overbought or Undervalued?

If the Dow Jones Industrial Average continues to gain ground at its current pace, it will wrap up the year at close to 1,900, adding another 20 percent to its already-impressive gains. That’s the “guidance” offered by market analysts Laszlo Birinyi and Jeffrey Rubin of Birinyi Associates -- they are careful not to call it a forecast, while arguing in support of their analysis in such a way that it sounds uncannily like one.