S&P to Reach 1,200 by Year-End: Strategist

Investors ought to get ready for a bull market, said Brian Belski, chief investment strategist at Oppenheimer & Co. and Art Nunes, market strategist at IMS Capital Management. They shared their take on the markets with investors.

“We view this as a significant turning point and maybe the early stages of a longer-term bull market,” Nunes told CNBC and said he expects the S&P 500 to reach 1,200 by year-end.

“A lot of people are underinvested in this market and we’ve been climbing a wall of worry all year long,” he said and recommended investing in the Rydex S&P ETF .

In the meantime, Belski said he expects the S&P to reach 1,120 over the next 12 months.

“Stocks [will] continue to lead the economy and the stock market is telling us that the economic bottom is in place—now the engine of growth has to come back in and 2010 is going to be the year of the “show me” period,” he said. “In between there though, we believe stocks go higher, the economy recovers and equities will be the place to be.”

Belski added that investors should consider looking into the health care sector where he expects potential growth.

“We’ve betting on the fact that we’re not going to see a broad, nationalization of health care—we believe stocks are clearly priced for nationalization,” he said. “If you take a look at the strong intrinsic growth factors of health care, namely biotech, life sciences, devices and to some degree, HMOs and drugs, growth is clearly there. During the 3rd quarter, health care was the only sector of the 10 primary sectors in the market that was showing topline growth and that’s going to be a main theme going forth.”

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