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Pros cheer Bank of Japan's move

Investors cheered Friday after the Bank of Japan boosted its stimulus program, sending U.S. stocks higher.

The BOJ said it would step up purchases of real estate investment trusts and exchange-traded funds, extend the duration of its portfolio of Japanese government bonds and increase the pace at which it expands its monetary base.

Dave Donabedian, chief investment officer at Atlantic Trust, told CNBC while the impact of the stimulus would be more ambiguous in Japan, it is great news for U.S. markets.

"What it says for the U.S. is that we've been in a liquidity-driven bull market for a number of years and it's not over despite what the Fed had to say earlier in the week," he said in an interview with "Power Lunch."

Pedestrians look at an electronic stock board displaying the figure of the Nikkei 225 Stock Average, center top left, and the exchange rate of the yen against the U.S. dollar, center top right, outside a securities firm in Tokyo, on Friday, Oct. 31, 2014.
Tomohiro Ohsumi | Bloomberg | Getty Images
Pedestrians look at an electronic stock board displaying the figure of the Nikkei 225 Stock Average, center top left, and the exchange rate of the yen against the U.S. dollar, center top right, outside a securities firm in Tokyo, on Friday, Oct. 31, 2014.

All eyes are now on the European Central Bank, watching to see if it will come in with more aggressive monetary stimulus. Donabedian is betting it will.

Read MoreBOJ surprises with fresh stimulus, Nikkei surges 5%

Carmine Grigoli, chief investment strategist at Mizuho Securities, also applauded the news.

"Most of the global markets have been driven by monetary moves overseas this year—the ECB and now the Bank of Japan. Very positive development for equities overall," he said.

Grigoli expects that positive vibe to continue, and has a target of 2,150 for the S&P 500 by next summer—a number he calls a bit on the conservative side.

Read MoreThese are the biggest winners in the October rally

"Earnings have been very favorable, interest rates have declined here recently, M&A activity remains very strong. So lots of positive developments here that I think as long as you can put off a Fed tightening, the stock market prospers," he said.

However, Donabedian sees a bumpy ride ahead.

"We went through a five-year period of almost 20 percent compound annual returns—sort of a rising tide lifts all boats kind of environment," he said. "We really believe that's over and we're in a more challenging, lower return higher volatility phase of the bull market."

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Donabedian said one reason is the strong dollar. U.S. companies are facing exporting challenges and a negative translation of overseas earnings into dollars.

"A narrower advance is more likely which means it's a stock picker's market," he predicted.

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