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

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:

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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