Don't expect the market rally to end anytime soon, strategist Jim McDonald told CNBC on Tuesday.
The markets have been moving higher since the Republican sweep on Election Day, which landed Donald Trump in the White House and the GOP keeping control of both houses of Congress. However, McDonald told "Power Lunch" he believes the recent run is more than just a postelection bounce.
"Breaking up legislative logjam will be helpful but the global economy has actually been gaining momentum since August. We think this momentum will continue into next year," said McDonald, who oversees $946 billion as chief investment strategist for Northern Trust.
"As long as rates don't jump too high, which we don't think they will, we think the rally can continue through 2017," he added.
One of his favorite sectors is financials, which he said will benefit from higher interest rates and the deregulation expected from the Trump administration.