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What everyone's missing about commodities: Paulsen

Commodities' long national nightmare may soon be over, at least according to one widely followed market voice.

"I think commodities are in a bottoming process," James Paulsen said Thursday on CNBC's "Futures Now."

Using crude oil as an example, Paulsen noted that despite being down sharply on the year, it has been trying to find its footing. "We saw it bottom in January and again in March," he said. And considering the 10 percent rally in oil on Thursday, Paulsen is even more convinced that the space will soon reach a floor rather than continue to collapse.

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And contrary to popular belief, Paulsen contends that history is suggesting the recent collapse coupled with the soon-to-be bottom could give a major jolt to the economy.

"Falling commodity prices have not proved a good leading indicator of a pending recession." said Paulsen. "When you look historically in three of the last four recoveries in the United States, dating back to the late recovery in the 1970s, commodity prices suffered a severe decline during an ongoing economic recovery," added the chief investment strategist at Wells Capital Management.

Paulsen pointed to July 1977, July 1986 and February 1999 as three past instances where commodities staged a crippling collapse only to bottom and lead to "faster economic growth, accelerating inflation and higher yields" in the months following. He believes that is what investors are witnessing right now.

Read MoreMarket bottom's in place: Strategist

"I think we are well into [the bottom]," added Paulsen. "I would suggest that we could return to concerns about inflation and interest rates quite quickly."

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