Growth in 2010 will be stronger than what the markets expect, said Barry Knapp, head of U.S. portfolio strategy at Barclays. He shared his stock picks and market outlook for next year.
“The overall market probably winds up the year roughly flat…[and] at the end of the year, the S&P will wind up at 1,120,” Knapp told CNBC.
“And it will look very much it did in 2004, where we spend half of the year adjusting to Fed policy normalization.”
Knapp said he also expects a 10 percent pullback next year:
“It won’t be a high-velocity sharp selloff, but a pullback nonetheless."
But "in the second half of the year we will go higher, as the macroeconomy improves and earnings go higher,” he said.
“Multiples contracting through that entire time period would be our expectation, so in that environment, it looks like a stock picker’s environment.”
Knapp's Sector and Stock Picks:
...And Sector Pans:
However, expect financials and consumer discretionary stocks to perform poorly, said Knapp.
- Watch Knapp's Previous Appearance on CNBC (Dec. 7, 2009)
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CNBC Data Pages:
No immediate information was available for Knapp or his firm.