Evercore ISI's Ed Hyman said he is bullish on the stock market because of President Donald Trump's economic agenda and put an 80 percent probability on some sort of corporate tax reform being implemented.
Hyman is Evercore ISI's chairman and head of the firm's economic research team. The strategist has been ranked No. 1 in Institutional Investor's poll of investors for economics the last 36 years.
When asked about the market's strength and resilience, Hyman said in an interview Friday on CNBC's "Squawk on the Street." :
"My view is that investors are still offsides. And so whenever you get a hint of things coming, the market responds to it quite a bit. Also I think people have realized that when he [Trump] says something is coming there is a good chance something is coming. ... In particular you can get an announcement of a corporate tax cut. That could be the first part before the other parts like a border tax … gets put in place."
The S&P 500 is up 8 percent since the Nov. 8 election through Thursday. In regard to which sectors will rise the most, he reaffirmed his bullish stance on a couple of areas of the market.
Financials have been "our favorite sector. That's because rates have been up," he said. "And the deregulation part is a big win for those guys. We still think that's a favorite sector we like. We like the industrials as well because of the global economy picking up."
He also discusses:
- Corporate earnings
- Fed rate hikes
- Trade wars
To watch the broadcast interview in its entirety, you must be a CNBC PRO subscriber.