There is a renewal of optimism that will carry the stock market higher, but there may be a correction sometime this year, strategist Jim Paulsen told CNBC on Friday.
In fact, he thinks the 2017 market reminds him of the one in 1987.
Back then, the economy began to recover after two years of a slowdown. There was also an "explosion" in the stock market and bond yields before the market came crashing down in October, the chief investment strategist at Wells Capital Management noted.
Now, in 2017, "we're finally pulling together some things," he told "Power Lunch."
Those things include a return to full employment, the broadening out of the recovery across the globe, the uptick in earnings and normalization of U.S. monetary policy, he explained. Plus, Donald Trump won the presidential election.
"Electing a pro-biz leader is awakening animal spirits," Paulsen said.
However, he's not anticipating a huge crash. Instead, he thinks there may be a correction from higher levels than where the market is today.