Dow to Tick Up 6% More in ’13: Siegel

Paul Krake of View from the Peak: Macro Strategies told CNBC on Sunday that the S&P could improve 15% over the next two months or so.

"Given the outlook for historically low funding rates, the S&P 500 looks some 15% undervalued, 20% from October lows," Krake said. He's widened equity holdings in his absolute return portfolio from 50% to 80% based on this bullish outlook.

Low interest rates mean funding costs for companies are extremely low and helps produce robust returns, he says.

"The naysayers will come in and say global growth is stagnant, economic growth is anemic," Krake said. "The reality is that this is the first year since 1995 that we've had simultaneous growth in China, Europe, the U.S. and Japan. Yes, it's slow, but valuations aren't stretched."

He did add that the S&P was likely to experience a 10% to 15% correction once the Fed made a serious tapering announcement.

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