Stocks may see another sell-off but “bonds are the bubble”

Markets were mixed on Wednesday.

The Nikkei 225 jumped 1.3 percent following the surge in US stocks on Tuesday but later on Wednesday, the STOXX Europe 600 fell 0.4 percent and the S&P 500 closed little-changed.

Jeff Carbone, co-founder of asset management firm Cornerstone Wealth Group, said that “when you look at the fundamentals of the economy and the market, we expect the market to ultimately move upward”.

In the meantime, though, many analysts think that stocks could see another sell-off.

“This is the second decline of this year of 5 percent or more and two out of every time we had more than one decline in a year, the second decline was sharper than the first,” said Sam Stovall, chief investment officer at CFRA.

“I don't think we're going to hit any new highs this year, and I do expect a lot of turbulence,” said Kristina Hooper, chief global market strategist at Invesco.

However, Leon Cooperman, CEO of Omega Advisors, said that the US economy is, “if anything, too strong”, and that the “conditions that normally lead to a big decline just aren't present”.

“My world is cash and stocks. I think bonds are the bubble, not stocks,” Cooperman told CNBC.