Walsh cited a number of factors contributing to the economic momentum, including improved balance sheets for consumers and corporations, as well as strong exports.
"Coporate balance sheets are in great shape. They certainty have the ability to spend money and they're starting to hire. It's been slow—that's certainly one of the missing links in this recovery—but we do think it's gradual and will pick up from here," he added.
Based on the housing prices bottoming out, Walsh has a middle view of the housing market. But added, there are opportinities in the non-agency mortgage sector.
"Our positive view on the non-agency mortgage sector is not based on a really bullish view for housing. It is based on a perception that the prices in that sector are very conservative. They are reflecting conservative expectations, something like probably a 10 percent further decline in home prices from here are already reflective in the prices," he said.
"But to really get negative on that sector, based on where the securities are priced, you have to have a view that would have housing down more than 10 percent," added Walsh.