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Top strategist: A correction is coming, but here’s why you should buy into it

A stock market correction is imminent, according to Canaccord Genuity's Tony Dwyer.

But rather than shy away from equities, Dwyer notes investors can use the pullback as an opportunity to buy into the next leg higher.

"Whenever [the market] gets this optimistic as it has been, and it slips back lower, you end up in a correction," the chief market strategist told CNBC's "Futures Now" on Tuesday. He noted that the median correction is typically around 6.8 percent.

"So our call, actually, is that we're going to continue to pull back for a little bit, but the more important message is: Once we do get this pullback and as fear picks up, you want to buy into it and not sell into it."

Nevertheless, Dwyer made his case by outlining the positive fundamentals he sees in today's market.

"The fundamental side of this backdrop is really terrific," said Dwyer. "We have a synchronized global recovery, we have corporate spreads and a credit market that are at their best levels in the cycle and our U.S. economy is getting better on the back of [small business sentiment], which saw a historic ramp over the last few months."

"That's because there's a sentiment in corporate America boardroom that it's so great to not have the prospect of increased regulation and increased taxes," he added.

According to Dwyer, it isn't necessarily the prospect of lower regulations or lower taxes that is driving the macroeconomic positives today, but rather the "non-negative sentiment towards capital spending, which increases economic activity." This is to say that in Dwyer's view, businesses are actually excited at the prospect of no new regulations or taxes being added on to those already existing, not so much the prospect that both will be cut down.

The strategist's long-term positive view of the economy leads him to believe that while a correction is on the way in the market, the S&P 500 can then rally to 2,470 by year-end. This means that Dwyer believes the index can rally another 4 percent by the end of 2017 off the back of economic fundamentals.

"So, between a global synchronized recovery and a better U.S. economic backdrop, you want to be buying into weakness, not selling it," he said.

The S&P is currently up 6 percent year to date and was just short of hitting 2,400 on March 1. Since then, the index has actually tumbled almost 1 percent.

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