Major U.S. markets bounced back on Wednesday, as the S&P 500 erased nearly 73 points of its recent pullback. However, since China is at the center of all of this market volatility, the fact that China’s Shanghai Index fell for the fifth consecutive day and is down 22 percent during that span has global investors worried about whether or not the worst is yet to come for U.S. markets.

One firm that isn’t fretting the market pullback is BMO.

Benzinga recently had a chance to speak to Brent Schutte, Senior Investment Strategist for BMO Global Asset Management, about where he sees U.S. and Chinese markets headed over the next 12 months, what warning signs traders should be watching for in coming weeks and if BMO has been buying this dip.

Where Are We Headed From Here?

Despite the fears in U.S. markets, BMO retains its bullish 12-36 month outlook for the S&P 500. Schutte told Benzinga that the outlook for China is not as clear.

“China has to liberalize their economy and make it less opaque to win investors who are willing to buy and hold for the long term,” he explained.

“That does not mean there will not be opportunities within individual Chinese equities and during shorter time periods, but for now we retain a more optimistic long-term outlook on the U.S.”

What To Watch For

When Benzinga asked what could change Schutte’s optimistic outlook for U.S. markets, he indicated…

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