S&P to Top Pre-Lehman Levels This Year: Darda

Stocks inched higher on Tuesday after a solid batch of earnings reports. How much further will the market go before investors see a pullback? Jeffrey Saut, chief investment strategist at Raymond James, and Michael Darda, chief economist at MKM Partners, shared their insights.

“In a market like this, you can have a 5 to 10 percent pullback at any time,” Darda told CNBC.

“But if you have a longer horizon and you remain constructive, you can view that as noise and buy into weakness.”

However, Darda noted that investors are still fearful and doubtful about the recovery cycle.

“The credit markets have basically normalized,” he said. “Pre-Lehman levels, on the S&P in August, the S&P was around 1,300—I think we can get to about 1,350 this year, not withstanding a temporary pullback or correction.”

In the meantime, Saut said he is “still constructive on stocks” into mid-term US elections.

“We can always find stocks that look like they represent decent values,” he said. “Over the long-term, any pullback is a buying opportunity.”

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No immediate information was available for Darad or Saut.