Economy is hitting a 'soft patch,' but PNC expects market to reclaim record highs this quarter

But that doesn't mean investors will be clutching their stomachs the whole time.

According to the firm's chief investment strategist, stocks should still deliver gains for investors over the next three months despite the recent batch of sluggish economic reports. "We're feeling the effects of that hangover from a slower sluggish summer in the data that's coming out more recently. So, no question the data is mixed. Soft data is just that: It's soft," Agati said Friday on CNBC's "Agati, who doesn't envision a recession hitting the U.S. until at least 2021, believes the bullish driver will be third quarter earnings season, which is scheduled to kick-off the week of October 14.

"Q3 and Q4 earnings will come in better than expected," said Agati, who predicts the results will help the market rise 4 to 5% from current levels. That gain would put the S&P 500 and Dow back at record highs."An underappreciated positive"Instead of focusing on headline risks associated with the ongoing U.S.-China trade war, the uncertainty surrounding monetary policy and next year's election, Agati recommends investors focus on fundamentals.

"The market should really be focused on the earnings backdrop," she added. "The challenge is that the market is really struggling to price in the high degree of uncertainty associated with all these lingering macro headwinds."Despite Friday's rally, the

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