Investment guru Jeff Saut predicts Wall Street’s seemingly endless bull-run stock-market rally will get up off the canvas and continue to charge deeper into the record books.
Saut, Raymond James chief investment strategist, last week's "minicrash" is not indicative of any fundamental changes in the economy or markets, and there's evidence a market bottom is forming.
"Earnings season is coming up. I think that's going to be the catalyst for the equity markets to trade back up to new all-time highs," he recently told CNBC.
"It's just like a heart attack patient doesn't get right up off the gurney and run the 100-year dash. It needs to convalesce for a few days," Saut said. "The equity markets are going to do the same thing."
Saut thinks the bull market can last close to another decade, but it won’t come without hurdles and potholes in the road.
"Two weeks ago on Tuesday, our short-term proprietary model flashed a sell signal. We wrote about it. We told people to abandon trading positions," Saut said.
Other experts are just as optimistic that the worst of the recent market selloff is over.
White House economic adviser Larry Kudlow on Sunday played down the U.S. stock market drop as a normal correction.
"I think the background is very positive for the stock market and I think, as I said, corrections come and go and people should ... stay very calm over these things, they are quite normal," Kudlow told the "Fox News Sunday with Chris Wallace" program.
The Dow Jones Industrial Average dropped more than 800 points on Wednesday, which was fueled in part by worries over higher interest rates.
"These kind of corrections are absolutely normal. The economy is in terrific shape. We are in an economic boom," Kudlow said.
Kudlow also said President Donald Trump had some concern the Federal Reserve may be raising interest rates too fast but respected its independence.
The Fed has raised interest rates three times this year as it seeks to prevent a vibrant economy from overheating.
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