Don Hays, president and chief investment strategist at Hays Advisory, told CNBC’s “Street Signs” that he expects the market to peak in the next 12 to 18 months with a 20% gain in the S&P 500.
He said growth stocks will do even better.
“What we wanted to do was buy when the market was panicked three to five weeks ago,” Hays said Wednesday. “That’s exactly what we did. We’re feeling very good today.”
He likes the technology, telecom and industrial sectors. He said the Philadelphia Semiconductor Index has risen to 1.06 from 0.94 in September.
“That means you have more orders being booked than billed,” he said. “That’s a good sign.”
Citing anecdotal evidence, he said the recent rise in the Israeli shekel may indicate good news in the war on terror.
“I’m reading between the lines, but I’m very hopeful that’s going to be good news in what you’re going to read in tomorrow’s headlines – not today’s,” he said.