With an S&P 500 year-end target of 2,185, Canaccord Genuity chief equity strategist Tony Dwyer expects the market to close the year more than 11 percent above current levels — technically making him the most bullish strategist on Wall Street. But that doesn't mean he advises buying in now.
In fact, Dwyer is calling for a 5 to 10 percent correction in the near-term, after which he sees the market resuming its upward climb.
"The fundamental backdrop is terrific," he said. "I just think the market is too extended and typically, at this point, it should pull back."
What's notable is that Dwyer makes this call without a specific catalyst in mind.
"In real bull markets, it's the unknown unknowns that come in and cause a 5 to 10 percent correction," he said. "It's just that when the market gets very tired and it gets extended, you don't know what's going to cause it, but it comes in, and I think that's what we're set up for."