NEW YORK (TheStreet) -- The S&P 500 closed at a record high on Friday. On CNBC's "Fast Money" TV show, Tim Seymour, managing partner of Triogem Asset Management, said it may be time to take some profits in some areas that have been rising in recent weeks, particularly in Exxon Mobil (XOM) and with emerging market stocks. He also expects volatility to increase in 2015.
If there's one thing investors can bet on next year it's that there will be higher volatility, Brian Kelly, founder of Brian Kelly Capital, said, agreeing with Seymour. Interest rates should be higher given the strong U.S. economic growth, so either bonds or stocks are in for a rude awakening. However, he's not sure which asset it will be.
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Guy Adami, managing director of stockmonster.com thinks interest rates are likely to go lower, which equates to a rally in the bond market. However, as the iShares Russell 2000 ETF (IWM) appears to be breaking out over $121, lower rates will likely cause the broader market to continue the rally.
Investors should stay long utility stocks, according to Steve Grasso, director of institutional sales at Stuart Frankel. Rates will rise, but likely not as fast as everyone seems to think. Avoid energy stocks, he cautioned.
Falling energy prices have also weighed on shares of Tesla Motors (TSLA) , Grasso said. Now that energy has stabilized, perhaps fund managers are driving shares of Tesla higher, looking to boost their annual performance. Tesla continues to make a series of lower highs and lower lows, said Adami. Investors need to wait for the stock to pull back to $180 or breakout above $240 in order to get long.
Seymour, however, thinks $240 looks like Tesla's top. The valuation is way too high given the increase in competition that's expected over the next few years.
Tesla is way ahead of its peers in terms of production and manufacturing, said James Albertine, autos analyst at Stifel Nicolaus. He's "incredibly bullish" on the next three to five quarters as the company boosts production on what's expected to be higher demand. He has a buy rating on the stock with a $400 price target.
Kelly listed his three reasons to be long gold going into 2015. First, he believes that more countries will enter the "currency war," devaluing their currency and causing gold prices to go higher. Second, strong demand from China will put a "floor" in gold prices, he said. Finally, gold is no longer highly correlated to the U.S. dollar, falling 1% in 2014 compared with the dollar's 10% rally.
Just because gold's correlation to the U.S. dollar seems to be breaking down in the short term doesn't mean the long-term trend is over with, which has lasted decades, Seymour argued. The metal is still in a downtrend and seems likely to decline to $1,100 per ounce.
Demand seems likely to outweigh supply in 2015, meaning gold prices are headed higher, Adami said. Investors who believe gold is going higher should buy the miners via the Market Vectors Gold Miners ETF (GDX) .
-- Written by Bret Kenwell