S&P Set for 12 Percent Gain: Stoltzfus
The S&P 500 appears on track for a 12 percent gain in 2013, Oppenheimer Chief Investment Strategist John Stoltzfus said Wednesday on CNBC.
"We think that 1,585 on the S&P, which is about 11, 12 percent up from where we are now, and $108 vs. $102 coming in this year, makes sense to us," he said on "Fast Money."
The positive catalysts, Stoltzfus added, would come from China, Europe and the United States.
"We've think you've got the emerging markets are coming back online once the Chinese get back from the lunar holiday in March, and really the government which has been the transitional government really sits down and starts pulling the levers. We think we're going to get some stimulus there that'll be good for the domestic economy in China. It will feed into the global economy," he said. "Europe is still on the mend, but it's doing what it needs to do.
"The U.S. has been growing. We've got housing. We've got automobiles. Both have put in good numbers, and we would expect that our economy will be able to weather the rockiness near-term and benefit from an agreement on this 'fiscal cliff.'"
Stoltzfus sounded positive on a budget resolution in Washington to resolve the series of tax hikes and spending cuts set to take effect Jan. 1 if no agreement is reached.
"We're just not expecting that the powers that be in Washington are going to be willing to essentially save defeat from the jaws of victory," he said. "I do know that they worry about legacy. There's plenty of vanity in Washington, and the history books would write about these guys if they do this."
OptionMonster's Pete Najarian agreed with Stoltzfus, saying he was "confident" the market would hit 1,585 next year.
"I like what I'm seeing going on the emerging markets. I like what we're hearing out of China. I like what we're seeing in our housing market, which I think also plays into the financials, as well. The financials are why we are where we are right now above that 1,400 level," he said.
Najarian said that a budget deal would provide a boost for the sector.
"I see the financials going a lot higher than they are right now," he said.
Joe Terranova of Virtus Investment Partners also agreed with the bullish outlook.
"Yes, absolutely, 100 percent," he said. "Financials, whether you own it on the equity or the debt side, and I will tell you on the debt side there is tremendous for any issuance in the financials themselves. That is the trade."
Trader disclosure: On Dec. 26, 2012, the following stocks and commodities mentioned or intended to be mentioned on CNBC's "Fast Money" were owned by the "Fast Money" traders: Joe Terranova is long VRTS; Joe Terranova is long TJX; Joe Terranova is long AAPL; Joe Terranova is long GS; Joe Terranova is long MS; Joe Terranova is long SWN; Joe Terranova is long GLW; Joe Terranova is long DELL; Joe Terranova is long VZ; Joe Terranova is long XOM; Pete Najarian is long AAPL; Pete Najarian is long FB; Pete Najarian is long BAC CALLS; Pete Najarian is long INTC CALLS; Pete Najarian is long CLF; Pete Najarian is long TCK; Pete Najarian is long EMN CALLS; Steve Weiss is long RIMM; Steve Weiss is long BAC; Steve Weiss is long M; Jon Najarian is short AGQ PUTS.