CNBC Stock Blog

Expect a 10% Correction in the Near-Term: Chief Investor

We are cautious on the markets in the near-term, but bullish in the long run, agreed James Shelton, chief investment officer of Kanaly Trust and Bill Spiropoulos, chief executive of CoreState Capital Advisors. They discussed their 2010 market projections.

Market Bull vs. Bear

“You have to realize that the market doesn’t go straight up all the time,” Spiropoulos told CNBC.

“So it wouldn’t surprise me to see a minor 5 to 7 percent pullback [in the short-term]. I think it will be contained to less than 10 percent in the U.S. and 20 percent in international markets.”

The markets are going to return to normalcy in the long-term, said Spiropoulos. He expects America to lead the world in GDP and growth, especially during the first half of the year.

Shelton's Counterpoint

In the meantime, Shelton said he expects a 10 percent correction in the U.S. in the near-term and more in the emerging markets.

"In 2010, after the big run that we’ve had, we’re relatively cautious at these levels,” he said. “I think that the market’s priced in a lot of the economic recovery scenario.”

“But longer-term, we’re bullish," he added.

Shelton said commercial real estate, housing, and foreclosures should all still be paid attention to. He warned that financials and consumer cyclicals are poised to lose the most.

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No immediate information was available for Shelton or Spiropoulos.