Wall Street's biggest bull: The market is 'inappropriately' pricing in a potential recession

• Tony Dwyer of Cannacord Genuity says that a fall in the markets should have been expected, since there has been "historically low volatility" and "historically high complacency" lately.
• However, he says he is not deterred by the recent sell-off, especially since business leaders have been "universally saying, 'We don't have issues in credit.'"
• "I'm a permabull when credit's good; I'm a permabear when credit's bad," Dwyer says.

Tony Dwyer of Cannacord Genuity said that with the recent sell-off, the market is "inappropriately beginning to discount a recession" despite strong economic indicators.

In an interview with CNBC's "Fast Money" on Thursday, Dwyer said that a fall in the markets should have been expected, since there has been "historically low volatility" and "historically high complacency" lately.

Dwyer, known as one of the biggest bulls on the Street, acknowledged that recent declines were caused in part by "excessive bullishness."

However, Dwyer said he is not deterred by the sell-off, especially since business leaders have been "universally saying, 'We don't have issues in credit.'"

"I'm a permabull when credit's good; I'm a permabear when credit's bad," Dwyer said.

He is watching volatility to determine when the markets will emerge from their slump. "You want to see the VIX not go back up to 28 when you retest or even slightly break the low," Dwyer said.