Even as calls for a sharp correction on U.S. stocks grow louder, one contrarian commentator told CNBC the bull run is far from over and stocks have a further 25 percent to run.
The S&P 500 closed 2 percent lower on Thursday at 1930.67, as investors fretted over Europe's economy, an Argentine default and a jump in U.S. labor costs, which prompted concerns about corporate margins. The index had hit a record high last week of 1991.39, a near 200 percent rise on the market's mid-2009 low.
According to Peter Morici, professor of economics at the University of Maryland and former chief economist at the U.S. International Trade Commission, digital technology will be the key driver of further gains on Wall Street in the coming years.
"The bull market is not done," he said. "Digital technologies permit businesses to use investors' cash far more efficiently these days, and could easily push up stock prices another 25 percent," he added, giving a time period of three to five years.
"Obviously if we go to war in Russia all bets are off, but barring some cataclysmic event and if we just have a normal adjustment (like we saw on Thursday), I see us getting it all back and over a period of time we will have sustainable price to earnings ratios higher than the last 25 years," he said, adding that he would not rule out smaller corrections along the way.