The S&P 500 has room to climb, even on modest performance, S&P Capital IQ Global Equity Strategist Alec Young said Friday.
"We're at 1780," he said, noting his mid-2014 price target for the S&P 500. "We established that a few months ago. So, you know, less upside than we've seen in the past, but still relative to the money we think you're going to lose in most areas of the bond market and inflation eroding your cash if you're sitting in a money market."
On CNBC's "Fast Money," Young was clear about what he saw as the best investment vehicle.
"We still think stocks are the best place to be right now," he said.
Young also said that the U.S. employment report, which showed 162,000 new jobs in July, would be supportive of the market.
(Read more: Job growth disappoints; rate drops)
"Today was a little anti-climactic," he added. "I think this is just a classic 'Goldilocks' report. It's weak enough that it pushes back the tapering concerns, so it's positive from that perspective. But I think as long as the healing trend in the economy and corporate earnings continue – even though it is at a frustratingly slow pace – you get a little bit of P/E expansion, I think our target could be conservative at 1,780."
Young said that he expected 5 percent earnings growth for the first quarter of 2014, with the second quarter clocking in around the same level. He also forecasted 7 percent earnings growth in the third quarter and 10 percent in the fourth.
(Read more: Bull sees bright spots beyond jobs report)
"In the aggregate, we think you're going to see 6, 7, 8 percent growth in the second half," he said. "That is an acceleration from the mid-single digits in the first half."
Young added that his estimates were modest.
(Read more: Real estate 'bubble in the making': Pro)
"We look out to next year. The Street's at 12 percent," he said. "We think that's probably a bit high, but again that high single-digit rate of earnings growth, we think, is doable. We think most areas outside of China globally continue to heal and accelerate moving into next year, including, most notably, Europe."
Young noted that a 16 multiple on earnings of $115 would mean a targets "well north of 1,800" for the S&P 500.
"And you pair that with really dismal risk/reward in fixed income and most places, especially longer duration," he said. "Where else are you going to go with your money?"
Trader disclosure: On Aug. 2, 2013, the following stocks and commodities mentioned or intended to be mentioned on CNBC's "Fast Money" were owned by the "Fast Money" traders: Enis Tanner is long GS; Enis Tanner is long WMT; Enis Tanner is long UUP; Enis Tanner is long SPY PUTS; Stephen Weiss is long AIG; Stephen Weiss is long ETN; Stephen Weiss is long C; Stephen Weiss is long BAC; Jon Najarian is long AAPL; Jon Najarian is short puts GLD; Jon Najarian is long DIS; Jon Najarian is long LMT; Jon Najarian is long V; Jon Najarian is long TOL; Jon Najarian is long CVC; Jon Najarian is long HUN; Jon Najarian is long MAR; Jon Najarian is long OC; Jon Najarian is long MGM; Simon Baker is long AAPL ; Simon Baker is long WFC; Simon Baker is long SBUX; Simon Baker is long AMZN; Simon Baker is long VIAB; Simon Baker is long LNKD.