Can Markets Repeat Last Year’s 29% Gain in 2014?

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Jan. 2 (Bloomberg) -- Bloomberg's Matt Miller and Mike Crofton, president & CEO at The Philadelphia Trust Co., discuss expectations for 2014 market growth in "On The Markets" on Bloomberg Television's "Lunch Money." Crofton and his firm own the stocks that are discussed.

Direction of the market?

129% gain in 2013. will we see anything like that again -- 29% gain in 2013. will we see anything like that again?

No.

we will come back in the fourth quarter.

I'm expecting 10 to 12% this year.

Most of it will come in the first quarter.

First you have to pick the sectors right.

I like industrials, energy, financials.

Today is a good day then.

Industrials, energy, technology.

Bank of america.

Go ahead and grab them.

What do you like bank of america?

They have been a great job to clean up their balance sheet and refocus their business.

With the increased interest rates, they have a great network of lending offices throughout the country, throughout the world.

They will be able to leverage that.

Their spread is increasing.

Any legal worries?

I think every bank in the country has legal worries.

The department of justice seems to be out to get banks.

I don't think there is anything specific to any one individual bank.

I notice you like ford.

Love ford.

Do you like them over gm?

Yes.

I am still managing.

You should let that influence.

I am sort of a victim of my own social network.

I like ford a lot because i think europe has bought in.

Europe will come back strong.

The ford f1 50, after 50, at 350 is going to knock the cover off this country.

For every 100 new houses sold, one ford truck is sold.

Housing is alive and well.

That is going to keep the ford trucks at the forefront.

We will see a new one next week.

Two weeks from now.

At the detroit auto show.

We are expecting to see a new f5 in 150 -- f-150. it is the most popular truck in the world.

What else do you like?

Re: ts going to remain as important?

-- are etfs going to remain as important?

The longer this market goes without a correction, the worse the correction will be.

If you could get 10% now, that would be great.

If the market goes up another 10%, we are looking at a potential correction of 20%. that could have the etfs in a little bit of trouble.

They have not been tested significantly on the downside.

It would seem also a huge negative effect for markets and the economy.

That is a blow when you have a 20% drop.

It will be a huge blow.

It will be a question of how quickly we recover.

I think you could have a crash type scenario.

Crashes -- you never see when they are coming.

You cannot analyze them without the benefit of hindsight.

Everybody says they knew what was going to happen.

Nobody is talking about it yet.

You are the only one.

Congratulations if you are right.

And a bummer for all of us.

Thank you so much for joining us.

We are back in 30 minutes.

"bloomberg west" is up next.

This text has been automatically generated. It may not be 100% accurate.

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