CNBC Stock Blog

Dow Headed to 12,000 after 'Brief Hiatus'?

Stocks slipped Monday even as credit card data pointed to an easing of consumer woes. Where's the market headed? Jim Hardesty, president of Hardesty Capital Management, and Doug Cliggott, US equity strategist at Credit Suisse, offered CNBC their insights.

The Dow Jones Industrial Average has only stalled temporarily, and it will rise to reach 12,000 by the year’s end, Hardesty said.

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“We're seeing an economy that’s recovering, which is good news, and I think we’re seeing a market that’s valuation is not fully reflecting the potential earnings in 2011,” he said.

“I think [that] says that this is just a brief hiatus and that we’re going higher.”

Hardesty added that despite a bigger risk premium brought on by the “traumatic” events of 2008, the Dow should easily penetrate its previous high of 14,164 by 2012. The index was lower at about 10,580 as of this writing.


Cliggott took issue with Hardesty's projection, saying he thinks strong earnings have already been priced into the market. But he does see opportunity: Cliggott is particularly focused on M & A opportunities within biotech, and in exploration and production within the energy sector.

“We see these segments as really being targets of the much larger companies in the respective sectors,” Cliggott said.


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Disclosure information was not available for Hardesty or Cliggott, or either of their firms.