Wall Street angst over a possible recession may be increasing, but one bull refuses to waver.
Federated Investors' Steve Chiavarone believes there's nothing on the horizon that suggests the 2018 market corrections will become a massive downturn next year.
Rather, he sees stocks hitting fresh record highs — citing labor market trends, inflation levels, the Treasury yield curve and credit spreads as key factors contributing to a favorable economic and market environment.
"We don't have any of the early signs of recession. Yet, we have a market where despite 20 percent earnings growth, the P/Es [price-earnings ratios] have fallen 20 percent," the fund manager said on CNBC's "Trading Nation" on Friday. "What that tells us is the market is pricing in recession in 2019. We just don't think that is going to happen."
Yet, it appears the Street isn't convinced.
The S&P 500, which closed at its lowest level since April, is off more than 12 percent from its all-time high of 2940 hit on September 21 and 2.75 percent for 2018.