Many investors are too conservatively positioned to the end of the year, said Thomas Lee, chief U.S. equity strategist at JPMorgan. He told investors where they should be looking.
“Dow 11,000 is a much greater probability in the near-term" than Dow 10,000,” Lee told CNBC.
“When we look at December, we think there’s a lot of pro-cyclical data that’s supporting a really strong recovery. And as you look at early 2010, you’re going to start to see seeds of a potential boom in terms of jobs recovery, so we’re bullish into year-end as well as early 2010.”
Lee said he sees the S&P reaching 1,160 by year-end, and told investors that if payroll numbers were to see a turn, 13 groups will outperform during the first 6-month period, including technology, software, wireless services, specialtyand hardline retailers, coal, aluminum, tankers and railroads.
“Gold is part of a risk trade that’s really fueled by extremely 'low-policy' rates globally,” he said.
“So the risk trade looks like it’s going to continue to be pretty strong next year as the dollar continues to be weak. I can’t see how we would argue for a correction in gold prices.”
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No immediate information was available for Lee or his firm.