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.
“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:
- Expect Another Recession in 2012-2013: Strategist
- 11 Stocks Poised for Gains in 2011—and Beyond
- Stocks Likely to See 8-12% Upside Next Year: Chief Investor
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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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