An "economic outperform story" in the United States will lead stocks, the dollar and bond yields higher, Citigroup Head of Macro Strategy Jeremy Hale said Thursday.
On CNBC's "Fast Money," he said that the strengthening U.S. economy would lead equities higher at least through the summer.
"I'm a bit of a heretic on the 'great rotation' idea," he said, alluding to the idea that money is flowing out of bonds and into stocks.
"The fact is that the flows never predict anything. Markets will just reprice," Hale added. "But I do think that Treasury yields will go up now. What we're seeing is correlation between good data, higher equity prices and high bond yields coming back.
"I think equities are the asset of choice now."
Hale noted positive factors that would bode well for investments.
"I think if you look at the underlying data, it's been pretty good for a while," he said. "The fact is, the U.S. had a much shallower recession, a better recovery so far, and we forecast continuing widening of sort of GDP trends relative to Europe, U.K. or Japan, or the industrialized countries.
Hale also noted that income growth and wealth gains were positive, as well as the return of capital spending.
Growth, he added, would clock in around 3 percent through 2014.
"And that should support asset markets," he said.
Trader disclosure: On March 14, 2013, the following stocks and commodities mentioned or intended to be mentioned on CNBC's "Fast Money" were owned by the "Fast Money" traders: Stephanie Link is long AAPL; Stephanie Link is long GS; Stephanie Link is long CSCO; Stephanie Link is long SBUX; Stephanie Link is long GE; Jon Najarian is long JPM CALLS; Jon Najarian is long MGM CALLS; Jon Najarian is long FIG CALLS ; Jon Najarian is long KKR CALLS; Jon Najarian is long XLF CALLS; Jon Najarian is long STX CALLS; Jon Najarian is long WLL CALLS; Josh Brown is long AAPL; Josh Brown is long BAC; Josh Brown is long GDX; Josh Brown is long XLU; Josh Brown is long WMT; Josh Brown is long TGT; Josh Brown is long LULU; Mike Murphy is long BAC; Mike Murphy is long FB; Mike Murphy is long EBAY.
