Market Bull: ‘I’m Too Conservative’

With a 1,650 target in the S&P 500, Cannacord Genuity's Tony Dwyer explained Thursday why the stock market is heading higher.

"At the end of the day, I've kind of been annoyingly bullish for about three years, almost four years," he said on CNBC's "Fast Money."

Dwyer said that fundamentals have remained the same: Low core inflation, an accommodative central bank, easing lending standards, increased loan demand, a good economy and good corporate profits.

"Until those factors change, it's hard for me to say you're going to get out, especially when you're at 14 times earnings," he added.

In a sub-3 percent environment, stocks trade around a 19 multiple, Dwyer noted.

"So I'm using a 15 multiple on a below-consensus $110 in earnings, and I'm the biggest bull," he said. "So I think I'm far too conservative, and I had most of my upside in the front half of the year."

Dwyer didn't appear overly concerned about how the Federal Reserve's monetary policy will affect stocks when it eventually shifts.

"We're going to get into a period where the market's not going to be sure how the economy'll react when the Fed takes the foot off the pedal. Frankly, it won't matter. But that transition in psychology, I think, will cause a correction in the middle part of the year," he said.

"And then the game is really on."

Dwyer said that the market will see multiple expansion, valuations rising to a multiple of 18 or 19 and earnings of $120.

"You can do the math, and it's above 1,650," he added.

Trader disclosure: On March 14, 2013, the following stocks and commodities mentioned or intended to be mentioned on CNBC's "Fast Money" were owned by the "Fast Money" traders: Guy Adami is long C; Guy Adami is long GS; Guy Adami is long INTC; Guy Adami is long MSFT; Guy Adami is long NUE; Guy Adami is long BTU; Guy Adami is long AGU; Brian Kelly is long TREASURY NOTES; Brian Kelly is long GOLD; Brian Kelly is long S&P; Brian Kelly is short Oil; Brian Kelly is short Gasoline; Brian Kelly is short Copper ; ; Karen Finerman is long AAPL; Karen Finerman is long BAC; Karen Finerman is long C; Karen Finerman is long JPM; Karen Finerman is long WMT; Karen Finerman is long TGT; Karen Finerman is long MSFT; Karen Finerman is long GOOG; Karen Finerman is long DIS; Karen Finerman is short JCP; Karen Finerman is long M; Karen Finerman is long FINL; Karen Finerman is long CFX; Karen Finerman is long FL; Karen Finerman is short SPY; Karen Finerman is short MDY, long puts; Steve Grasso is long AAPL; Steve Grasso is long ASTM; Steve Grasso is long BA; Steve Grasso is long GOOG; Steve Grasso is long GDX; Steve Grasso is long LF; Steve Grasso is long LNG; Steve Grasso is long MHY; Steve Grasso is long MU; Steve Grasso is long PXD; Steve Grasso is long NVIV; Steve Grasso is long PFE; Steve Grasso is long S; Steve Grasso is long VLO; Steve Grasso is funds long FB; Steve Grasso is funds long MSFT; Steve Grasso is funds long HPQ; Steve Grasso is funds long ZNGA; Steve Grasso is funds long GM; Steve Grasso is funds long USG.