U.S equities could see a rally of between 5-10 percent this year, according to the chief investment officer of Guggenheim Partners, but it is European stocks that investors are eyeing up.
The S&P 500 surged 30 percent last year and that, Scott Minerd told CNBC, the momentum could continue into 2014.
"Historically when you've had the sort of performance we had in 2013, typically the momentum carries on through the first half of the year, so I'm looking for another maybe 5 to 10 percent for U.S. equities."
But Minerd said his company, which manages more than $190 billion in assets, is focusing more on European stocks as the "valuation gap" between the U.S. and Europe opens up.
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"I particularly think the periphery in Europe looks exceptionally attractive and I think the downside risks for the time being in Europe are probably fairly muted," Minerd told CNBC in a TV interview.
"Even if we do see a continued slowdown in prices and we were to have some sort of threat to the European recovery, I think 'doctor' Draghi (European Central Bank President Mario Draghi) has made it clear, he is going to hold this thing together no matter what and the ECB will resort to using the printing press if it has to."