so, as you know, our pal adam parker has 1840 on the -- he's looking for the market to be up 10% 12 monthsed 2% today to japan, asset allocation meeting. we're adding -- going overweight japan. we were equal weight, loved it, now going woefr overweight. >> where do you want to allocate capital? >> i think things are more balanced than in a long time. we've seen bond yields double. it's hard to say stocks don't kill bonds. now it looks even. you look at high quality munis, new york state, 5%, tax-free. >> that's competitive. >> yes, you're right. david is right, stock market has momentum. i don't think the fed is a big source of uncertainty. they have telegraphed they'll start tape heing. i think it would be a shock if they didn't take something back. >> really? >> yeah. it would be amazing -- >> because they've lose credibility. they set you up for this. that's not how the fed operates. they'll do it. in a small amount, given how weak the economy is. and nervous about market reaction. even if they do 15, they're still pumping in $17 billion every month which still adds a lot of juice. >> c

so adam parker remains bullish on the group overall.e do think that pipeline news flow can continue to move this group higher over the course of time. >> sir, it's good to have you on the show. thanks for coming on. >> thank you. >> all right, david, be well. again, morgan stanley. guys, what are your top picks in the space? >> this is an unpopular call, but i actually shorted sbi, the biotech etf, i talked to you about that about a month ago. i just see a lot of the outperformance being driven by a beta chase on the part of money managers. you don't need to have the beta chase anymore if we're seeing an acceleration growth. >> i think pfizer is a great name to own, and also amgen, after the recent deal, a bit of the sell-off could be interesting. >> gilliard. to me, a very, very cheap stock. ten times earnings. tremendous pipeline. it's growing significantly faster than pharma. guess what? it's cheaper based on forward earnings. >> all right, dr. j, give me a pick. >> merck. >> all right. later on cnbc, be sure to check out the exclusi

>> david, our adam parker, our u.s. the conservative and bearish side, put out his forecast the day before yesterday -- maria, you'll love this -- up 12% to 1,840 next year. >> in the s&p 500. >> that's right. >> and we are at 1,565. >> right. improving economy, moving up to the 2.75% growth rate toward the end of the year and into 2014. we would use any pullback, whether driven by syria, whether driven by the discussion of the new fed chairman, whatever it is, use it as an opportunity to buy good-quality stocks -- pfizer, johnson, abbott. good, quality, healthcare stocks, buy some coke, buy some pep pepsi, buy some colgate. >> janet, the yield on the 10%. is 3% scary for you? do you advise differently when -- as opposed to when it's lower, 1%, 2% range? >> if we're saying you're looking at yields at 3%, it's not a problem overall. yields at 3%, still not even back a normal. i don't see that as an impediment. what it does become is a dislocations in the market from a short-term perspective in certain sectors. so certain

a new forecast, analyst adam parker, chief equity strategist at morgan stanley, 1840, this same timeyear, that would be a long way to go in a short period of time. the worst case scenario is 23-27 and they worked it all out and said the highest probability is a year from now, 11% gain from where we are today, growth in emerging markets, growth in developing nations as far as the economy is concerned, what could throw a wrench into this rally is a stronger u.s. dollar, higher oil prices and marginally higher interest rates. we hear a lot of calls all day long, but we are feeling more bullish from major banks which could have an influence on the market. dennis: thanks very much, sandra smith. >> in new season of nfl football action along with players when it comes to added padding on the field, jeff flock in woodridge, illinois with the main patting manufacturer for the nfl's 5 and knee pads with more. >> players love them and i will show you why. they are making them right here. this is new technology that really makes you able to breeze and move in a way you couldn't before. the comp

morgan stanley's adam parker makes his case next. >>> plus, apple's last frontier. the stocks in. >>> dollar general delivers a solid beat. why is one of our traders bearish on that name. top of the hour in about 15 minutes. >> thank you very much. >>> now it's almost time in a little over an hour from now samsung will unveil its first smart watch. the galaxy gear. google and apple expected to release their smart watches in the future. cot smart watch now replace the smartphone? let's ask kerry mccracken and christina far, a technology writer from venture beat who got a first look at samsung's smart watch last weekend. good morning to you both. >> hey there. >> good morning. >> christina, so what can you tell us? what did you see? >> well, i got a call on friday, and i rushed down to silicon valley and a source told me they had a prototype for me to play with, and this prototype turned out to be one of samsung's galaxy gear smart watches which was sent to a few select developers to build kind of apps for the new watch. and so i actually got a chance to play with it,