Stocks face a potential "melt down" because of the concerns raised by Dubai World's debt problems, but stocks could also "melt up" if the issue is resolved, Marshall Gittler, international chief strategist at Deutsche Bank Private Wealth Management, told CNBC.
"Because of Dubai there is the risk of a melt down, of a plunge, but also if things don't go bad there is a risk of a melt up," Gittler said.
"There is always a possibility that we'll get a setback when you have things cropping up out of the blue like Dubai," Gittler added.
Global stock indexes fell sharply last week after Dubai World sought to delay repaying debts owed by two of its firms: Nakheel and Limitless. Since then, Dubai World's creditors have formed a committee to negotiate the debt and the company has eased investors' fears by pledging to reorganize the debt.
Without stocks being hampered by events such as Dubai's debt delay, the momentum remains positive, according to Gittler.
"Right now money is free and the global economy is gradually recovering so it just makes sense that people's risk appetites are coming back," he said.
A lot of investors have not been fully invested during the rally, which has driven stocks higher since March, Gittler pointed out. Those investors are still keen to make returns in December, he said.
"Towards the end of the year, there are a lot of funds that are still underweight, there is the year-end book closing," Gittler said.
By contrast, Neil Dwane, chief investment officer for equities for Europe at RCM, said investors are climbing a "wall of worry" and stocks will "grind higher."
- Watch Marshall Gittler and Neil Dwane interviewed above