GO
Loading...

Can stocks repeat 2013? JPM's Lee: 1 in 3 chance

Long-time stock market bull Thomas Lee told CNBC on Monday there's a good chance 2014 will yield another double-digit gain, predicting the S&P 500 could hit 2,075 by the end of next year.

"We're still bullish," the JPMorgan chief U.S. equity strategist said in a "Squawk Box" interview. "I think a lot of the things that were supporting stocks this year are still going to support equities next year."

(Read more: Good news may mean lighter stock gains in new year)

The S&P 500 is expected to close out 2013 with gain of about 30 percent, which would be the best year since 1997. The Dow Jones Industrial Average is on track for about a 25 percent increase for 2013, its best year since 1996. The Nasdaq Composite Index was the big winner—up 37 percent this year—but would only be at its highest level since September of 2000. The new trading year kicks off Thursday, after the New Year's Day holiday.

"We've looked at some classic bull markets, which this is really tracking closely," Lee said. "In the sixth year ... maybe a third of the time you actually match the gains of the fifth year. So I think there's a 1 in 3 chance we're up 30 percent."

(Read more: Good news may mean lighter stock gains in new year)

Bullish since 2009, Lee said the S&P would reach at least 1,825 by the end of 2013. His projection of 2,075 for next year would be nearly a 13 percent gain based on Friday's close.

"I still feel comfortable that we've got at least a couple years of very good markets," he continued, "and it's going to be driven by profit growth and some economic surprise."

Last January, Lee predicted the Dow could peak as high as 20,000 by 2017 with the S&P topping out at 2,400 or 2,500 in a similar time frame.

(Read more: Here's what's reallywrong with this market)

In Monday's interview, he said "it's possible for the S&P and the Dow to top ... at much higher levels than what I may have said a year ago."

But he stressed it really depends on "the quality and the type" of economic growth over the next few years.

"We hope it's quite good," Lee said.

By CNBC's Matthew J. Belvedere. Follow him on Twitter @Matt_SquawkCNBC.

Introducing Morning Squawk: CNBC's before the bell news roundup

Sign up to receive Morning Squawk in your inbox each weekday › Sample