As if to make negative sentiment official, the Bank of France said Tuesday that the economy stalled in the 4th quarter. This only affirmed Kaul's outlook.
"Expectations have come down some much, there's room for a lot of positive surprises. Expectations are for 8 percent S&P growth, but I think we're going to hit double digits once all companies report, they've been controlling costs and profits are coming in," he said.
Kaul thinks weakness in the euro zone affects market psychology far more than it does S&P profits.
"Emerging market activity affects the S&P a lot more than euro zone does."
The market is backing up his view. S&P sectors rallied across the board, led by materials, up 2.22 percent on Tuesday. The largest U.S. aluminum producer, Alcoa, forecast 7 percent demand growth for the metal, based on emerging market prices.