Another Stock Rally on the Horizon?

Despite various market headwinds, stocks will continue to rally, said James Paulsen, chief investment strategist at Wells Capital Management, and Jim Lacamp, senior vice president at Macro Portfolio advisors.

“It’s important to recognize that most of what happened over the last two years was a huge readjustment from a panic about depression that proved not to be true—so we went down more than we should have, and readjusted back,” Paulsen told CNBC.

Paulsen said if commodity prices peak and conditions in the Middle East calm down in the next few months, then he sees another leg up for stocks.

In the meantime, Lacamp said oilis not the only headwind for stocks right now.

“It’s other input prices, European heads who have not agreed on anything yet, our own debt ceiling in the U.S. and we’re going to have to wrestle with quantitative easing,” he noted.

But the U.S. economy is more self-sustaining than it has been in the past, and profits should likely stay strong, said Lacamp.

Paulsen Likes:

MSCI Emerging Markets

S&P Technology

S&P Industrials

Scorecard—What They Said:

  • Lacamp's Previous Appearance on CNBC (Mar. 7, 2011)
  • Paulsen's Previous Appearance on CNBC (Feb. 17, 2011)

More Market Intelligence:

CNBC Data Pages:

CNBC Slideshows—FYI:


Wednesday's Top Dow Laggards (as of noon):




Exxon Mobil



No immediate information was available for Lacamp or Paulsen.