Markets

Strategist Jim Paulsen: Gear up for the longest recovery ever

Will we see recovery in Q4?
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Will we see recovery in Q4?

At a time when markets find themselves distracted by anxiety in the financial sector, Wells Capital Management's Chief Investment Strategist Jim Paulsen said he sees a healthy recovery coming on, thanks to positive trends among a few market indicators, he told CNBC Monday morning.

"I think there is a global recovery or a global bounce happening … that I think will help spur some optimism again," he told "Squawk on the Street," adding that October will be essential for getting a "first read" on earnings momentum and the GDP.

Paulsen referenced Monday morning's Purchasing Managers' Index report as an example of recovery both within the United States and globally. The reported cited improved outlooks for the United States, Germany and China.

The strategist also said that this will be a slow but long-lasting recovery, possibly surpassing the record for the longest recovery for the United States, which stands at 10 years.

Major corrections in cyclical parts of the market, international markets and emerging markets have served to cleanse the market in a way, Paulsen contended.

"There is a lot of refreshment that's going on here, not the least of which is a huge drop in the rate structure, the competitive interest against which we judge equities across the globe," he said.

He added that "lower rates, lower evaluations, and more pessimism" could in turn enable the United States to shoulder the Fed's rate-tightening measures and experience a lengthier recovery.