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With Trump tax cuts, market will have significant leg upward, strategist says

President-elect Donald Trump's surprise victory has sent the market higher, and there is more good news ahead, strategist David Bianco told CNBC on Friday.

For one, Trump has promised to slash taxes.

"If we get the tax cuts, and they don't need to be half as big as Trump is promising, I think the market has another significant leg upward," the chief U.S. equity strategist said in an interview with CNBC's "Power Lunch."

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And while health care and financials have already rallied significantly this week, Bianco thinks there is more room to run in those sectors since they now face a friendlier political climate, higher rates and a stronger economy.

For health care stocks, he is predicting double-digit upside from here until the end of the year.

"That's a sector that was beaten up terribly over the past year and even longer on the idea that the policy risk was just too much to bear, despite what's been good sales and earnings growth amongst the best out of the S&P," he said.

As for financials, there are times when things are good and times when things are bad — and right now is a good time, Bianco said. However, he wouldn't overdo it.

Meanwhile, for those who are overweight in bonds right now, he suggests looking for bond substitutes in equities.

"I don't think people are going to get smashed in long-duration bonds, but we do think over time those yields rise," he said. It's not a bond bubble, but I do think yields rise slowly."

He particularly would look at domestic bond substitutes that have inflationary pricing power, like utilities or real estate investment trusts.

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