S&P to Clear Speed Bumps to Hit 1,600: Strategist

The S&P 500 is on track to hit 1, 600 by year end, as potential speed bumps are smoothed out through next year, Stifel Nicolaus market strategist Barry Bannister said Friday on CNBC.

On "Fast Money , " Bannister noted that the market was 30 points above projected levels since his last on-air appearance in June .

"We've had a 100-point move since then. We're going to have to work for the next 100 points, but there are a lot of policy maneuvers here and overseas that'll be resolved in the fourth quarter, and that could be bullish, " he said.

Next year, a more sustainable recovery in housing would be bullish, Bannister added.

Earnings weren't too large a concern either.

"Markets and economies are not well-aligned, as you know, and as the estimates have been cut, $100 or more has not been reflected in the stock market, " he said.

Weighing in on the presidential election, Bannister said that "a fire-Bernanke platform would be negative for the market, " alluding to Republican candidate Mitt Romney's vow to get rid of Federal Reserve Chairman Ben Bernanke.

Among the "Fast Money" pros, not one panelist thought the S&P would hit 1, 600.

"What I would say is that sector selection is a lot more important, " said Josh Brown, adding that investors should "ignore the siren call" of those who say China and Europe's problems will be solved anytime soon.

"We're not going to get to 1, 600 by the end of the year. I can tell you that, " OptionMonster.com's Pete Najarian said.

"It's more and more of a stock-picker's market, " he added. "Look at the run in something like a Home Depot and Lowe's ."

Joe Terranova of Virtus Investment Partners liked the consumer discretionary sector and financials, JPMorgan and regional banks such as Texas Capital Bancshares .

"I think the regionals are getting stretched, " he added.

Stephen Weiss of Short Hills Capital said that the market would pop again "when Spain comes around."

"For this year you buy the financials because it's been de-risked from Europe. It's been de-risked from Bernanke, " he said.

His pick: AIG .

Trader disclosure: On Oct. 12, 2012, the following stocks and commodities mentioned or intended to be mentioned on CNBC's "Fast Money" were owned by the "Fast Money" traders: Josh Brown is long WMT; Josh Brown is long DEM; Josh Brown is long HD; Josh Brown is long TGT; Josh Brown is long WFC; Pete Najarian is long AAPL; Pete Najarian is long C; Pete Najarian is long JPM CALLS; Pete Najarian is long INTC CALLS; Pete Najarian is long SBUX; Pete Najarian is long FB; Pete Najarian is long MSFT; Pete Najarian is long WFC Calls; Stephen Weiss is long QCOM; Stephen Weiss is long BAC; Stephen Weiss is long AIG; Stephen Weiss is short RIO ; Stephen Weiss is short AKS; Stephen Weiss is short AAPL PUTS; Joe Terranova is long VRTS; Joe Terranova is long WFM; Joe Terranova is long SBUX; Joe Terranova is long NFLX; Joe Terranova is long SWN; Joe Terranova is long TRV; Joe Terranova is long VZ; Joe Terranova is long XOM; Joe Terranova is long CVX; Joe Terranova is long COP; Joe Terranova is long SU; Joe Terranova is long CSTR; Joe Terranova is long CHKP; Joe Terranova is long NXPI; Joe Terranova is long GLW; Joe Terranova is long EMC; Joe Terranova is long SHORT DE. MINI-SP FUTURES.

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