The stock market will be up 20 percent in 2014 but could experience a correction early in the year of as much as 10 percent, Byron Wien predicted in a CNBC interview on Tuesday—a day after releasing his annual Top 10 Market Surprises for 2014.
In Wien's top prediction for 2014, he described stocks as a "Dickensian market," referring to "the best of times and the worst of times."
While the correction could be 10 percent early on, "the market will really pick up speed later on in the year when some of the negatives clarify," such as Obamacare glitches getting worked out and the political environment in Washington improving, he said.
Wien also said the U.S. economy will finally break out of the doldrums in 2014, with growth exceeding 3 percent—noting "it was picking up at year-end."
In last year's predictions, Wien said the S&P 500 could see a correction from 2012 levels, before recovering to end the year "pretty flat." The S&P finished the year up 30 percent.
Wien readily admitted he missed the mark on stocks, but argued, "My view on the  economy wasn't too far off. I thought the economy would grow at a very feeble rate."
"I thought profits would probably suffer. If you look at net income, it did suffer," he continued. "But because of share buybacks, profits were up about 4 percent for the S&P."
(Flashback: Wien's 2013 Market Surprises)
In a press release Monday, Wien announced his Market Surprises for 2014—a list he started the list back in 1986, when he was chief U.S. investment strategist at Morgan Stanley. Wien defines these predictions as having at least a 50 percent chance of happening.
In his "also rans" of surprises that didn't quite make the actual list, Wien predicted that Hillary Clinton won't run for president in 2016.
"What forces her hand is the frustration of being president of the United States," he said with the caveat that he doesn't have a better than 50 percent conviction on it.
In another, he said tea party favorite Sen. Ted Cruz, R-Texas, will emerge as the clear frontrunner for the 2016 Republican presidential nomination.
"This is a very smart guy," Wien said. "I feel [Republicans] need somebody with star quality," saying if Cruz moderated his positions he'd be a viable candidate.
Wien said he thinks New Jersey Gov. Chris Christie and other GOP moderates will fade in popularity as momentum builds for fiscal and social conservative policies.