Investment Strategists Optimistic -- but It's a Matter of Degree

What's in store for the market? Alec Young, equity market strategist at Standard & Poor's, and Edgar Peters, chief investment officer at PanAgora Asset Management, gave their forecasts on "Morning Call."

Young told CNBC's Mark Haines that the previous quarter's results "are coming in better than expected" -- and he sees "further to go on the upside" for the remainder of 2007. As for 2008, the strategist says his peers' consensus for S&P 500 profit growth is 11%. Young declared that the S&P 500 may even be ready to "challenge the 2000 highs."

Peters agreed that the outlook is good, but pulled back from Young's exuberance, saying he is merely "somewhat, not very, optimistic." Peters said he's "worried by the macropicture," particularly inflation -- and he believes it's "highly possible" the Federal Reserve may hike rates.