Dow Will Reach 14,000 in Two Years: Strategist

Ned Riley, CEO of Riley Asset Management, and David Hefty, principle of Cornerstone Wealth Management, discussed their opposing economic outlook — and shared their sector likes and dislikes. (See their recommendations below.)

“I really believe this rally is the real deal — I felt it two, three months ago,” Riley told CNBC.

Riley said he sees the Dow reaching 14,000 in the next two years.

He also said he is bullish on the housing front and said there will be a “scramble to buy more homes” over the summer.

Hefty said the markets are in a “relief rally” that could last another 12 months.

“All the gains have already taken place,” said Hefty.

“It’s a cyclical bull market but we’re still in a secular bear market. The markets will go up, but when it hits the peak, we’re going to see a potential 50 percent sell-off as we hit the next wave of the secular bear.”

Despite opposing market views, Riley and Hefty each had investment recommendations.


Riley Likes:

- Financial Select Sector SPDR

- PowerShares QQQ

- SPDR S&P 500

- Technology SPDR

Riley Dislikes:

- S&P Energy

- S&P Materials

Hefty Likes:

- S&P Materials

- S&P Technology


No immediate information was available for Riley or Hefty.