CNBC Stock Blog

S&P Near 1200 This Quarter: Equity Strategist

Markets are looking quite positive for 2010, said James Paulsen, chief investment strategist at Wells Capital Management. Phil Orlando, chief equity market strategist at Federated Investors, agreed. They shared their market strategies with CNBC.

Market Edge

“We think the major building blocks are falling into place—employment, housing, consumer spending, inventories. Fourth quarter earnings are going be pretty good,” Orlando told CNBC.

“Markets are going to continue to grind up to about the 1,200 level on the S&P over this quarter and we think by the end of this year, [it's] going to be in the 1,300 to 1,350 area.”

Additionally, Orlando said he expects commodities and agriculture to trend higher.

“Ags can be a 25 to 50 percent move this year and gold and oil will continue to do well," he said. "We continue to avoid Treasurys because we think the 10-year yield is going to back up to 4 percent in the near-term and 5 to 5.5 percent in the next year.”

In the meantime, Paulsen said two drivers that can boost the markets will be continued profits and consumer confidence.

“If you think about the consumer by the springtime, we’re going to have a household that will see four consecutive quarters of gains in their net worth, good 401(k) statements, a year’s worth of gains in the Case-Shiller home price index, and job gains,” he said.

“This will add to the growth and market picture as we move through the year.”

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No immediate information was available for Orlando or Paulsen.