James Altucher: S&P to Jump to 1,300 by Year's End

The stock market will continue to flourish and could even rise more than 9 percent to 1,300 by December, said James Altucher, managing partner of Formula Capital.

He disagrees with the bears who believe the market will head downward anytime.

“The bears have been consistently wrong throughout this whole rally. If you followed the bears' advice at the bottom, you'd be dead broke right now. Better to be consistently bullish than consistently bearish,” he told Yahoo Finance TechTicker.

Altucher said that even though many homes are in foreclosure, the market is improving and leveling off since the data from Case-Shiller shows the housing index has increased during the past six months.

Businesses now need to desperately rebuild their inventory, which will boost the economy for up to two years, he said.

“People are going to be surprised how fast and furious this inventory rebuild is going to happen," Altucher said.

While unemployment remains high at 9.7 percent, there are now more temporary workers, he points out. Other employees are also getting more pay per hour, more hours each week and more part-time hours, he said. These gains will lead to additional full-time jobs.

“Before this is fully over we're going to see new all-time highs again. And I do think that we're going to see 1,300 by the end of the year on the S&P," Altucher said. The index recently traded at about 1,188.

Other experts also predict that the S&P will keep rising, Bloomberg reported.

Katie Stockton of MKM Partners said she believes the S&P 500 will increase by 13 percent during the next several months. The S&P could reach 1,325, she said. Her previous projection was between 1,220 and 1,230.