In light of recent U.S. economic data, BlackRock has greater confidence the business cycle can continue, but stocks may struggle to grind higher, the firm's global chief investment strategist said Tuesday.
Richard Turnill said U.S. economic growth appears set to remain slow but robust, but investors must question whether the bulk of returns for equities are already baked into current stock prices.
The S&P 500 has rallied from its Feb. 11 low of 1,810 to top 2,070, but the index remains down nearly 2.5 percent over the past 12 months.
"You've got to bear in mind that we're into the seventh year of the economic expansion now, that equity markets have rallied a long way," he told CNBC's "Squawk on the Street."
"So when you think about what the future holds, you've really got to bear in mind that you're starting from a higher level of valuation, you're at an advanced stage in the cycle and there are material risks out there," Turnill said.