All the ingredients are on hand for the market to mix together a perfect bull run and stocks could rise another 15 percent this year and possibly 25 percent next year, Roger Nightingale, strategist at Pointon York, told CNBC.
“I think the markets are poised to rise to much higher levels … This is the perfect recipe for a bull market,” Nightingale said.
“You’ve got first of all good profits being earned. Secondly you’ve got extraordinarily low inflation, probably going negative. You’ve got extraordinarily low interest rates in nominal terms and staying at zero. And you have exceedingly easy money,” he said.
As well as having all the necessary ingredients, the heat will really get turned up as investors scramble to get back into the market after missing out on the recent rally, Nightingale said.
The speed of the next leg of the rally could be far faster than the gains over the last few weeks, he said. Nightingale doesn’t expect the gains to happen within the next week, but within the next few months.
However, if the economy starts to show real signs of improvement it could adversely affect the potential rally, he said.
“If the economy were to bounce up again … that would actually be a negative because that would imply that interest rate increases were on the horizon again,” he said.
Nightingale thinks that is unlikely, however, as he’s bearish on the economic outlook.
- Watch the full interview with Roger Nightingale above.
For the Investor:
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