US Markets

Stocks may have a 'surprisingly strong' end of the year, expert says

Closing Bell Exchange: Dow near session lows

While many market watchers think equities are overpriced, one expert still thinks there might be a "surprisingly strong" end of the year.

That's because of that lack of optimism about the market right now.

"The market does not go down when people want it to go down. It goes down when everybody is incredibly optimistic. We're not seeing that," United Capital CEO Joe Duran said in an interview with CNBC's "Closing Bell" on Monday.

He noted the economy is doing a little better and a Federal Reserve interest rate hike doesn't appear to be coming anytime soon.

"We might have a very long, protracted maybe 10- or 11-year recovery without a 15 percent drop, which would be unheard of," Duran said. "But we also are seeing the slowest recovery and therefore might last longer than anyone expects. And the rotation that we're seeing going everywhere is a bullish sign."

UCX's co-founder and chief economist, Jack Bouroudjian, on the other hand, is bearish. Thanks to the monetary policy of the Fed and other central banks around the globe, people have been "squeezed" into the market, he said.

While the market did not fundamentally look good back in February and March, people had a lot of cash sitting on the sidelines with nowhere to go, he told "Closing Bell."

"There's a lot of complacency out there," Bouroudjian warned. "When I see the VIX under 12, when I see the weekly VIX pushing 7, that tells me there is no fear in this marketplace and that is something to worry about."

Duran agreed this is a seasonally dangerous time and thinks the market is overdue for a 5 to 8 percent correction.

However, because there is a broad recovery in the stock market and not a narrow one, he's not concerned.

"What you'll see I think is a modest pullback, very quick snapback on the VIX, and all of a sudden everyone will say the world is ending and the market will recover again," he said. "We've seen that pattern over and over again for 7 ½ years. I don't see a reason to think it's ending."