The S&P 500 should soon hit a record high due to a number of positive forces coming together, closely followed market watcher Jim Paulsen said Thursday, following the best two-day rally on Wall Street since March.
Economic growth, not only in the U.S. but around the world, is picking up in a "synchronized" fashion, and deflationary concerns are fading, the chief investment strategist at Wells Capital Management told CNBC's "Squawk Box."
"I think we're [also] past what everyone is perceiving as the worst earnings season. Earnings get a little better the rest of the year," he said.
If Federal Reserve policymakers do indeed hike interest rates in June or July, as they've signaled is a possibility, the stock market would view such a move as a vote of confidence in the U.S. economy, Paulsen said, adding a U.S. recession is unlikely in the next few years.