US Markets

At beginning of 'long bear market in bonds,' which should help banks, investor Bill Miller says

Miller: We're at the beginning of a benign bear market in bonds

The bull market in bonds is over and that should benefit financials, legendary investor Bill Miller told CNBC on Wednesday.

"We're at the beginning of a long bear market in bonds that will last for who knows how long," he said in an interview with "Closing Bell."

While bank stocks have enjoyed a run up since President-elect Donald Trump won the election, Miller, who is chairman and chief investment officer at LMM, believes history shows there is probably more room to run.

That's because back in the 1950s, when there was a long bear market in bonds, the banks did really well and traded at market multiples, he explained.

Therefore, he thinks big banks are going to have a "very nice several year run," especially if the yield curve shifts up.

One favorite name of his is OneMain, which he called the "perfect Trump stock."

"If we're going to bring all these jobs back and get all the people to work, that's going to work and it's a very cheap stock," Miller said.