The Dow's flirtation with 20.000 is not meaningful in itself, but it does illustrate that the market's trend is positive heading into the new year, said Keith Lerner, chief market strategist at SunTrust Private Wealth Management, a unit of SunTrust Banks  (STI - Get Report) . Lerner said longer-term headwinds remain, but he sees a modest uptick in the global economy in 2017 and is therefore leaning bullish for U.S. stocks, preferring the industrial, energy and financial sectors.

He sees opportunity in Japanese equities, which he believes will be helped by the weakening yen. He is underweight Europe, however, due to Brexit and other political uncertainties on the continent. Finally, when it comes to fixed income, he recommends high-quality bonds with shorter maturities and convertible securities.