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S&P Will Reach 1,300 Next Year: Strategist

Markets opened lower on Wednesday after a report showed that housing starts fell sharply in October. Where do stocks go from here? Chris Hyzy, investment strategist at U.S. Trust, and Maury Fertig, chief investment officer of Relative Value Partners, shared their outlooks.

“This market is headed higher,” Fertig told CNBC. “We’ll hit 1,200 on the S&P sometime in the first quarter of 2010.”

Fertig said he expects earnings news to be positive throughout the first quarter of 2010 and more merger-and-acquisition activities to take place.

“And the flow of funds,” he added. “The first of the nine months of this year, $267 billion has flowed into bond mutual funds and only $4 billion into equity funds—so the retail investor is eventually going to come back into the market.”

In the meantime, Hyzy said he is neither a bull nor a bear—but a "moose" instead.

Markets are "going higher—we have one more push before the year end,” said Hyzy.

“But the key is…we believe job growth will come in at the early part of the first quarter, then you'll have a constructive marketplace. That's why we expect 1,300 on the S&P by the end of next year.”

Hyzy Likes:

Technology

Industrials

Materials

Energy

Fertig Likes:

Discounted Closed End Funds

NFJ Dividend Strategy

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Disclosures:

No immediate information was available for Fertig or Hyzy.

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