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Everything's bad, and that's good for stocks: RBC strategist

Slow growth, high stocks

is selling off. Commodities are in a bear market. And are hitting new lows. All signs are pointing to a global economic slowdown, but while investors fear that the deceleration could put pressure on U.S. stocks, one top strategists sees it as reason to buy.

"We believe that stocks will perform quite well in this [slowing] environment," Jonathan Golub said Monday on CNBC's "Trading Nation."

As Golub sees it, the continuation of the type of stagnant economic growth of the past six years can only help extend the current bull market.

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"If we are in a slower economic environment it extends the market cycle and that is good for stock market multiples," RBC's chief U.S. market strategist said. "You get less inflation and that's also good for multiples."

Golub also says the current soft economic environment will force "companies to respond to this economic kind of environment by pushing harder on margins, and that pushes profits higher than people think they can go, which results in earnings surprises like we are seeing right now." As of Monday, 74 percent of the 191 S&P 500 companies that reported earnings beat on expectations.

"There's talk that earnings aren't good," said Golub. "But we're beating estimates right now by almost 6 percent. And if you compare that to the average over the last 20 to 25 years, which is about 3 percent, you see they are coming in about twice as strong from a surprise perspective."

Bottom line, said Golub, "the U.S. market really has the innovative areas that are going to drive the market globally."

The S&P 500 closed Monday half of a percent lower.

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