Peroni: Dow 20K by Year-End

Traders work on the floor of the New York Stock Exchange.
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Traders work on the floor of the New York Stock Exchange.

The U.S. markets are feeling very optimistic after the economy added 223,000 jobs in April. Most economists believe the U.S. is back on the mend after a severely cold winter and stronger dollar seemed to slow growth nationally.

Gene Peroni, Senior Vice President and Portfolio Manager of Advisors Asset Management, seems to think that the markets have a lot of elasticity. "Neither heightened trading volatility nor unsettling news headlines have meaningfully derailed the bullish course for stocks," he said.

Peroni doesn't think that valuations in the leading sectors are greatly out of line with the historical norm and that a little pull back wouldn't be out of character. He believes the "corrective behavior in recent weeks could ultimately fortify longer-term up trends."

Peroni tells CNBC's Power Lunch that he sees "buyers stepping in more actively on declines" and strongly believes that the Dow Jones Industrial Average will reach 20,000 by year end.

The Dow Jones Industrial Average was trading higher at 18,181.37 during the time of this interview.