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Strategist with hot hand sees 5-7% stock pullback

Raymond James strategist Jeffrey Saut has been on a roll predicting the stock market recently. On Tuesday, he called for a pullback of as much as 7 percent.

Crediting his proprietary market timing model, the firm's chief investment strategist correctly called the late August bottom, in a CNBC appearance just days before the swoon that's held as the low for the year.

More recently, in a CNBC interview on Oct. 29, he said his model was showing a top. Four trading days later, the S&P 500 hit a near-term peak and steadily moved lower, losing 2 percent as of Monday's close.

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With the S&P on a four-session losing streak, Saut told "Squawk Box" on Tuesday the downturn "could portend a change in trend on a short-term basis."

He said stocks could see a 5 to 7 percent decline but investors should look at any such move as a buying opportunity.

Saut believes stocks are in a secular bull market, referring to a market that moves higher over the long haul, even with periodic corrections and/or bear market conditions.

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"They typically last 14 or 15 years. They compound at 16 percent per year. If past is prelude, we got another seven or eight or nine years left in this thing," he argued, saying he's thought this way since "the week of March 2nd of 2009."

The possibility of the Federal Reserve hiking interest rates for the first time in nine years should not derail the bull market, Saut said.

"I think the Fed with the softening economic statistics, except for last Friday's [jobs] numbers, is actually in no big rush to raise interest rates here," he said, but conceded the Fed will probably move next month.

"I don't think that's much of a headwind at [a hike of] a quarter of a percent," he said.