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‘Start of Bull Market’: US Trust President

Stocks are at the threshold of a bull market, US Trust President Keith Banks said Monday.

"I do think volatility will continue," he added. "Unfortunately, what's driving it is partly the debate around the Fed. Will they, won't they, with respect to tapering? What a lot of people forget is that they do begin to taper, that's a good thing. It means the unemployment rate is going down. It means the economy is firming up. It means inflation looks healthier; it's not at a very low level."

On CNBC's "Fast Money," Banks said that he believed investors were reading too much into any piece of economic news.

"People are still hung up on the data point du jour," he said. "They're so desperately seeking a trend of some sort, be it good or bad, that every single data point that comes out, they latch on to."

Banks said that his year-end target for the S&P 500 was unchanged at 1,600.

"We do believe we're at the early stages of a secular bull market," he added.

Banks said it was time to buy "pro-cyclical" stocks.

(Read More: Second-Half Stock Surge or Swoon?)

"We think if you really believe we're going to get tapering because the economy's accelerating and unemployment's coming down, you need to be more exposed to pro-cyclical sectors and stocks," he added.

One area to avoid would be Europe, Banks also said.

"It's going to take a tremendous surge, we believe, of monetary easing, a la what the U.S. has been doing and what Japan more recently has begun to do," Banks added.

(Read More: 'Correction Not Over' in Market: Josh Brown)

Trader disclosure: On July 1, 2013, the following stocks and commodities mentioned or intended to be mentioned on CNBC's "Fast Money" were owned by the "Fast Money" traders: Joe Terranova is long VRTS; Joe Terranova is long TRV; Joe Terranova is long AXP; Joe Terranova is long OXY; Joe Terranova is long CRUDE OIL FUTURES; Joe Terranova is long MINI S&P FUTURES; Stephanie Link is long AAPL; Stephanie Link is long GS; Stephanie Link is long JPM; Stephanie Link is long WFC; Stephanie Link is long CSCO; Stephanie Link is long FB; Stephanie Link is long EBAY; Jon Najarian is long AAPL; Jon Najarian is long GLD; Jon Najarian is long ALXN ; Jon Najarian is long DFS; Jon Najarian is long EXC; Jon Najarian is long MAR; Jon Najarian is long OC; Jon Najarian is long SUNE; Jon Najarian is long TIVO; Jon Najarian is long TMO; Jon Najarian is long ZNGA; Jon Najarian is short NEM puts; Jon Najarian is short ABX puts; Jon Najarian is short AGQ puts;

For Tavis C. McCourt
Raymond James & Associates makes a market in shares of the Apple Inc.


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