US Markets

A flat market in 2014? One pro thinks so

When economy improves, get in cyclicals: Pro
VIDEO3:1203:12
When economy improves, get in cyclicals: Pro

James Paulsen doesn't agree with the steady stream of bullish market forecasts for next year.

The chief investment strategist at Wells Capital Management, Paulsen told CNBC on Friday that predicts a flat stock market next year, contending that the could reach 2,000 by the end of this year only to tumble back down to current levels next year. His only strong play in 2014? Commodities.

Asked whether investors should get out of the market, Paulsen remained noncommittal.

(Read more: BofA: Equity pockets still 'incredibly cheap')

"It's going to be a difficult call," Paulsen said on "Squawk Box." "I don't think the bull is over. I think the bull is going to take a pause next year and continue on higher in 2015."

Also predicting a 10 percent correction next year, Paulsen attributed his forecast of a volatile, flat stock market to increasing velocity of money supply, which he said is accelerating for the first time in the economic recovery.

(Read more: History says stocks can keep doing well in 2014)

"Initially all that does is sends up better economic information, which makes the stock market goes nuts, which we're doing now," Paulsen said.

(Read more: The emerging market to watch in 2014)

Robert Doll, the chief equity strategist at Nuveen Asset Management, predicted that strong earnings growth would propel the market to end 10 percent higher next year, a more bullish call in line with consensus estimates. He agreed that the markets would see more volatility next year.

"This was basically a docile, straight-up, easy year," Doll said on "Squawk Box."

Paulsen said investors could prepare for his predicted flat market by playing cyclical stocks in early 2014, before getting into defensive equities into the second half of the year.

—By CNBC's Jeff Morganteen. Follow him on Twitter at @jmorganteen.