The U.S. economy is in the seventh year of economic expansion, but it is the slowest expansion since the 1950s, J.P. Morgan Funds' chief market strategist David Kelly said.
Kelly, who lives in Boston, compared the economy to a basebell game between the New York Yankees and Boston Red Sox.
"It's very long because it is very slow," he told more than 2,000 investors and financial advisors at Morningstar Investment Conference in Chicago Thursday.
Corporate profits are being suppressed by a high U.S. dollar and cheap oil, Kelly said. The dollar is overvalued because the U.S. economy has a trade deficit while Europe, Japan and emerging markets collectively have surpluses.
"There is a global currency war going on, and we are pacifists," Kelly said. He expects the trend to limit further dollar gains, even when the Fed raises rates.
Oil prices will gradually move up as production falls and consumption rises, Kelly said.
"We are genetically evolved to waste gasoline, this is what we want to do as a people," he said. "And when the prices gets low enough, we will do that. But you can't do much of that immediately."
For the first five months of this year, more than 55 percent of the light vehicles sold in the U.S. sales were minivans, light trucks or SUVs, the highest it has been in a decade, Kelly noted. Meanwhile, oil companies have scaled back their production.