The global benchmark for equities - the S&P 500 - is likely to see a surge of over 5 percent in the next month despite anxieties over corporate earnings, according to Nomura strategist Bob Janjuah.
But a sharp drop is still looming, the notable bear warned, adding that global growth is only achievable if the U.S. consumer once again gets hooked on personal debt.
"For me 1,950 is what I'm looking for on the S&P, so risk-on I guess for another month or so," he told CNBC Wednesday.
"I think there's some small upside in the data but I think the other thing is positioning and sentiment got a little bit wiped out earlier this year. And that means I think there's space for markets to get overboard again."
His prediction comes despite stocks seeing a cautious couple of days with concerns over valuations and an earnings season that is likely to disappoint. Earnings for the S&P 500 are expected to grow by just 1.1 percent this quarter, and revenues are expected to rise 2.7 percent, according to Thomson Reuters.
Despite this pessimism, Janjuah believes that stock markets haven't been driven by earnings for some time and instead it's central bank policymakers who have pushed prices higher with accommodative tools like bond-buying and ultra-low interest rates.
"If you look at the S&P, if you decompose the gains last year, the vast bulk of the gains did not come from earnings or revenue increases, they came from stock buybacks," he said. Buybacks happen when firms buy their own shares trading on the stock exchange, reducing the portion of shares in the hands of investors. They offer a way to return cash to shareholders - along with dividends - and usually coincide with a company's stock pushing higher as shares get scarcer.