Stocks will 'power through' slump, new records coming this year, Credit Suisse's Jonathan Golub predicts

Market bull Jonathan Golub said stocks will make another record run this year just as the Dow sank back into correction territory.

The Credit Suisse chief U.S. equity strategist believes Wall Street is making a mistake by not embracing an unprecedented first-quarter earnings season.

"It's really strange. We're seeing the best earnings season maybe ever. Twenty-five percent year-over-year growth in the ninth year of a recovery, and companies are beating by 8 percent," Golub said Wednesday on CNBC's "Trading Nation." "But the market's response to this is far more muted than normal."

His thoughts came shortly after the Federal Reserve made its latest decision on interest rates, leaving them unchanged, but noted it detected inflation.

"I'm generally a believer that we overemphasize the importance of the Fed as opposed to the economic backdrop and the earnings backdrop," said Golub.

The market didn't welcome the Fed's assessment. Stocks finished the Wednesday in the red.

The Dow has now dropped more than 10 percent below its Jan. 26 intraday all-time high of 26,616.71. The S&P 500 is now 8 percent below its intraday record high of 2,872.87 from that same date.

Despite the leg down, Golub expects a comeback. He predicts the S&P 500 will rally about 13 percent to 3,000 by year-end.

"This ultimately powers through. Take a look at stocks. They started the year with a forward P/E [price to earnings ratio] of 18x. Today it is a forward P/E of 16x," Golub said. "Stocks, if they don't rally, are going to get cheaper and cheaper."

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Michael Santoli

Michael Santoli joined CNBC in October 2015 as a Senior Markets Commentator, based at the network's Global Headquarters in Englewood Cliffs, N.J.  Santoli brings his extensive markets expertise to CNBC's Business Day programming, with a regular appearance on CNBC's “Closing Bell (M-F, 3PM-5PM ET).   In addition, he contributes to CNBCand CNBC PRO, writing regular articles and creating original digital videos.

Previously, Santoli was a Senior Columnist at Yahoo Finance, where he wrote analysis and commentary on the stock market, corporate news and the economy. He also appeared on Yahoo Finance video programs, where he offered insights on the most important business stories of the day, and was a regular contributor to CNBC and other networks.

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