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By this measure, stocks look fairly cheap: BMO

Stocks have been trading at the most expensive levels since 2004, but the chief investment officer at BMO says it's actually trading at a discount to one area of the market.

"The market looks expensive relative to its history when you look at a lot of the traditional measures like price to sales, price to earnings and so forth," said Jack Ablin on CNBC's "Futures Now" this week. "But when you look at the stock market through the lens of bonds, the stock market still looks cheap."

According to Ablin, the "earnings yield" in the market has historically matched the triple-B bond yield, which is the yield for the lowest investment-grade bonds. Recently, however, that trend has begun to reverse, and Ablin says that is a sign to buy stocks over bonds.

"Now, the triple-B bond yield is trading about 1.5 to 2 percent below that of the earnings yield," said Ablin. "Now I would argue for at least more attractive capital going into equity over bonds."

What's more, Ablin also said that "positive stimulus" in the U.S. and around the world is signaling a positive economic outlook for global markets.

Stocks rallied on Friday, fueled by news that White House chief strategist Steve Bannon was leaving his position. This was after a morning where the Dow touched its lowest level since July 27, and the S&P 500 Index its lowest level since July 11.

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