The benchmark S&P 500 Index could hit new all-time highs—but those gains will be short lived, Wells Capital Management's Jim Paulsen said Monday, echoing the concerns of a market still unsettled by global risks and monetary policy.
Since hitting its 2016 intraday low of 1,810.10 on Feb. 11, the S&P 500 has jumped over 10 percent. Meanwhile, the Dow Jones industrial average has also bounced since then, trading just 1.3 percent lower for the year, after a dismal start to 2016.
"The catalyst that brought us from 1,800 to here, was evidence that the U.S. economy was not recessing. I think the catalyst that could take from where we are to upwards of 2,200 is better economic data coming out of the global economy," Paulsen told CNBC's "Squawk on the Street" on Monday. At least for now, conditions are ripe for stocks to continue their upward trend.
If we see better data out of the euro zone … I think there is a chance for a synchronized bounce that could take stocks higher," said Paulsen, Wells Capital's chief investment strategist. "I kind of think we might be headed higher here in the intermediate term, maybe breaking to new all-time highs."