The S&P 500, which passed 1,500 for the first time in seven years Thursday, could reach 1,650 this year, according to Tony Dwyer, equity market strategist for FTN Midwest Securities.
“I think we’re going to have double-digit returns from here,” Dwyer said on "Morning Call." “I think it’s important to understand where we are in the cycle. There’s clearly going to be a slow down in earnings, but… at this point in the cycle, it’s valuation expansion that drives upside for equities. We believe that you started the valuation expansion with a peak in rates last July. We think you’re going to see more multiple expansion.”
But Douglas Cliggott, chief investment officer for Dover Management, said he expects earnings to fall below current levels by the end of the year.