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Dow to 20,000 by 2020, CIO Says

The bull rally in the stock market could continue through the end of the decade, Seth Masters of Bernstein Global Wealth Management said Tuesday.

"We said last year that we thought that the Dow would hit 20,000 by the end of the decade," he said. "I think that's still the right call, but it might take a while, and it probably won't be unidirectional."

The Dow Jones Industrial Average finished at a new all-time high of 15,387.52, while the S&P 500 also closed at a new all-time high of 1,669.16.

On CNBC's "Fast Money," Masters said that upgraded S&P 500 targets from Goldman Sachs might actually be understated.

Goldman Sachs issued new targets for the S&P 500 of 1,900 for 2014 and 2,100 for 2015.

(Read More: Goldman Sachs Upgrades S&P 500 Target)

"If you think about the time horizon, though, I think they might be a little bit short in terms of where their expectations are because I don't think markets go straight up," he said.

Masters noted that since 2008, there has been a "steady trend of safety" among investors, first into cash and then into bonds, followed by a decline of their values.

The same thing has occurred in stock market sectors considered safe, he added, leading to increased share prices and diminishing returns.

"We actually think this is going to be a great market for active stock picking, and to be very selective," Masters said.

(Read More: Dow 17,000 This Year: Jeremy Siegel)

"It's not about the sector you're in. it's about cheap stocks and high-growth stocks within each sector," he added. "You don't need to take a lot of sector exposure to win. In fact, we don't think you're paid that much to do that today."

Trader disclosure: On May 21, 2013, the following stocks and commodities mentioned or intended to be mentioned on CNBC's "Fast Money" were owned by the "Fast Money" traders: Karen Finerman is long AAPL; Karen Finerman is long BAC; Karen Finerman is long C; Karen Finerman is long JPM; Karen Finerman is long TGT; Karen Finerman is long GOOG; Karen Finerman is long NM; Karen Finerman is short SPY; Karen Finerman is short MDY; Karen Finerman is long MDY Puts; Steve Grasso is long ASTM; Steve Grasso is long BA; Steve Grasso is long BAC; Steve Grasso is long GDX; Steve Grasso is long GOOG; Steve Grasso is long LNG; Steve Grasso is long MHY; Steve Grasso is long MJNA; Steve Grasso is long NVIV; Steve Grasso is long PFE; Steve Grasso is long QCOM; Steve Grasso is long S; Dan Nathan is long VIX JUNE 16/20 CALL SPREAD; Dan Nathan is long IBM JUNE 205/195/185 PUT FLY; Dan Nathan is long NTAP JULY 35/40/45 CALL FLY; Dan Nathan is long CAT JULY 85/80 PUT SPREAD; Tim Seymour is long AAPL; Tim Seymour is long BAC; Tim Seymour is long WMT; Tim Seymour is long SBUX; Tim Seymour is long MSFT; Tim Seymour is long NOK.

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