Stock Pullback Will Come—but Not Yet: Barton Biggs

The S&P 500 will rise to 1200 or 1250 before there's a meaningful correction, so although stocks aren't as cheap as they were a few months ago, they're still worth buying, said Barton Biggs of Traxis Partners.

"Everybody thinks it's gone too far. We're getting all kinds of advice that we ought to cut back and lock in some gains," Biggs told CNBC. "It takes courage to be a pig, and I'm a pig here." (See video at left for more.)

Biggs recommended the following sectors and markets to investors:

Retail: "As the stock market has gone up and good things have happened in the economy ... you're going to get big increases in confidence and people are going to start spending again," he said.

Emerging Markets:The global economy is rebounding faster than the US, and Biggs specifically suggested buying into Eastern European countries such as Poland, Turkey and Russia.

Biggs also likes pharmaceuticals, technology and real estate investment trusts (REITs).

One sector not on Biggs' list: financials.

"Financials are tech in 2003," he said. "They've had a big bounce off the bottom just the way tech did and they're going to be unproductive money for the next five years."

Also on CNBC.com: