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Strategist and economist clash over effects of election on U.S. markets

Strategist and economist clashed Tuesday morning when asked what to expect of the U.S. stock market post-election.

Jim Paulsen, chief investment strategist for Wells Capital Management, told CNBC's "Squawk on the Street" that the election's expected outcome — gridlock — will be "comfortable" for the market, predicting slight growth and a confidence boost among investors.

Joe LaVorgna, chief U.S. economist at Deutsche Bank, countered Paulsen's optimism, saying gridlock would by contrast stifle growth acceleration.

"What businesses want is some idea that the parties are working together," LaVorgna told "Squawk on the Street." If gridlock persists, he predicted growth would not rise over 2 percent, maximum.

On the other hand, Paulsen said growth does not necessarily need to come from within the country.

"We're seeing the first synchronized bounce in growth abroad," the strategist said. "I think we're going to have China back bouncing, I think we've got the U.K. doing better, we've got the Eurozone doing better."

"Overall, growth in the United States may get a little boost just from the rest of the world," Paulsen said.

LaVorgna disagreed with Paulsen's forecast of global markets. The economist said that with interest rates at record lows, falling demand and a lack of pricing power, growth stuck at today's low levels could eventually hurt the market.

"When you're growing at 1-percent-something, unless global growth is a lot better … at any pothole, you're in a recession," LaVorgna said.

One thing the experts could agree on was the need for the Federal Reserve to raise rates, a move that is widely expected to occur in December.

Paulsen said a rate hike could boost confidence — a critical stimulant for consumers and investors alike.

"I think the capability to boost capital spending is there if you boost corporate confidence," Paulsen said. "The capability to borrow and lend money is there, with repaired balance sheets, if we just have the confidence to do it."

But tangible stimuli — a new administration, normalized rates — must come first, according to Paulsen and LaVorgna. And how the market responds to those stimuli remains to be seen.