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Power Play: Chances of market peak and recession

Workers at the Bicycle Corporation of America plant in Manning, South Carolina.
Randall Hill | Reuters

Stocks have turned lower since the Nasdaq hit 5,000 on Monday, leaving some investors to wonder if this is the market top.

"Markets do eventually peak, generally because the Fed has tightened sufficiently or because a recession occurs. We do not see a recession on the horizon," Julian Emanuel, executive director of U.S equity and derivatives strategy at UBS, told CNBC's "Power Lunch" on Wednesday.

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The Fed is expected to raise interest rates this year after keeping them near zero since 2008.

"Our work shows that on average, once the Fed starts to hike, the market does not peak until 2 year later and moves 33 percent higher from the first hike." Emanuel said. For now, Emanuel believes the bull market is intact and any pullback is a buying opportunity.