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S&P to Rise 15-20% Next Year: Chief Investor

Tuesday, 21 Dec 2010 | 11:27 AM ET

We’re in a cyclical bull market that started last year but stocks are overbought for the moment, according to Art Nunes, chief investment officer of Northwest Asset Management.

Technical Tuesday
What the technicals are saying about this market, Art Nunes, Northwest Asset Management.

“We ran into a rough patch in this bull market back in May-June time frame, with a 17 percent correction, but recently, all the broad market averages have gone on to hit new bull-market highs, especially the small- and mid-cap areas,” Nunes told CNBC.

“And since bull markets typically last 3 to 5 years, this one has quite a bit further to go.”

Investors should be taking advantage of international stocks right now, especially the emerging market sector, suggested Nunes.

“With the recent dollar rally, [emerging market stocks] have pulled back and their relative performance has suffered as a result, so this provides a great entry point,” he explained. “And on the domestic sector, I’d be patient and wait for a pullback in prices in the weeks ahead.”

In addition, Nunes said he sees a 15 to 20 percent upside target for the S&P 500 in 2011.

Nunes Favors:

SPDR KBW Regional Banking Index ETF

PowerShares DWA Emerging Markets Technical Leaders ETF

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Scorecard—What He Said:

  • Nunes' Previous Appearance on CNBC (Dec. 13, 2010)

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More Market Analysis:

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CNBC Data Pages:

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CNBC Slideshows:

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Tuesday's Top Dow Gainers (as of this writing):

JPMorgan

American Express

Bank of America

General Electric*

Alcoa

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Disclosures:

No immediate information was available for Nunes or his firm.

* General Electric is the parent company of CNBC.

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Disclaimer

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JPM MLP ETN
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KRE
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