CNBC Stock Blog

S&P to Hit 1,200 by Year-End: Chief Investor

Stocks continued its decline on Tuesday after a report showed the economy grew less than expected in the third quarter. Eric Thorne, investment advisor at Bryn Mawr Trust Wealth Management and Carmine Grigoli, chief investment strategist Mizuho Securities shared their market outlooks.

Afternoon Market Check

“We’re at a point in the year where investors don’t want to be out of the market right now,” Thorne told CNBC.

“There’s an awful lot of momentum driving this market and the good news is: the economy’s fundamentals are improving."

"But what we’re worried about is that expectations are also getting a lot higher, so a pullback of 5 to 10 percent would not surprise us and probably would not be something to worry about longer-term—it’s a good chance to add to stocks as well.”

Thorne said he is a fan of the emerging markets, especially the BRIC countries.

“Emerging markets are going to help us get to the historical growth rates that we traditionally had in the U.S., but we won’t have going forward,” he said.

In the meantime, Grigoli said he expects markets to move “substantially higher” in the next 6 to 9 months, based mostly on increased merger and acquisition activities.

“I see M&A activity doubling in the next year, leading to a mass infusion of capital into the equity market and that could fuel it; and valuations are cheap,” he said.

“There are a number of positives here and so you need to remain invested, although you could see an increased volatility due to year-end tax selling.”

Grigoli said his year-end target on the S&P 500 is 1,200.

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No immediate information was available for Grigoli or Thorne.