Investors will not see the same returns in the next five years as they've seen in the last five years, but it will still be possible to squeeze positive returns from stock and bond portfolios, said Ed Keon, portfolio manager at Quantitative Management Associates, on Friday.
"The good thing is that we really haven't had the excesses build up, the high leverage or the great risk-taking that normally leads to the end of an economic cycle or market cycle. People are still cautious. I think what that means is we're probably going to have an extended cycle, both for economic growth and for the market," he told CNBC's "Squawk Box."
Analysts have revised down first-quarter earnings growth forecasts for S&P 500-listed companies dramatically since the beginning of the year. Companies in the index are now expected to turn in negative growth of 5 percent, compared with a forecast at the start of the year for 4.3 percent growth.
A strong dollar, which makes American goods more expensive in foreign markets, and the impact of low crude prices on the energy sector have raised concerns about earnings for U.S. companies.
While Keon still likes U.S. stocks on the view that earnings will eventually rebound, he said European stocks with a currency hedge are the better investment right now.