The market will stay stagnant throughout the year, Byron Wien, vice chairman of Blackstone Advisory Services and one of Wall Street's most well known strategists, told CNBC.
"We're going to have a better-than-expected level of earnings, but the market has already discounted that," he explained. "The market ended the year at 1,115, and that's where it's going to end in 2010."
Fed's Next Move
Wien predicted the Fed would tighten rates but said short-term rates are not what he has his eye on.
"Long-term rates are the key, and I think the 10-year Treasury, now around 3.5, is going to go to 5.5," he added.
Wien, himself short Treasurys, said some of our key lenders, mainly the Middle East and China, are becoming uneasy about how many Treasurys they own.
Financial Regulation
Wien recommended restricting the amount of leverage financial institutions have, including banks and investment banks.
"A number in the teens is a fair number, but not in the 20s or 30s.”
Wien's Sector Picks: