Laszlo Birinyi says the stock market rally isn’t done, but says individual investors should avoid emerging markets.

Birinyi, who warned about bank stocks back in the fall of 2007, tells CNBC that he thinks the Dow Jones Industrial Average will reach 11,000 by year-end, and that the markets have a long way to run. “There’s still an awful lot of liquidity,” he said. “That’s why you see these rallies after a piece of bad news: because too much money is sitting on the sidelines.”

But beware emerging markets, he says.

“Rules and regulations are different and the markets are not necessarily as transparent as ours are,” he said. “And for individual investors who are not on top of this day in and day out, I think it’s probably not the best place to go.”

Birinyi says two factors drive emerging markets: flow of funds, and commodities. And, he says, he’s concerned about commodities like gold, silver, and oil going higher from here.