Chris Hyzy said "We're 5 years into a 20-year bull stock market"

As the S&P 500 topped 2,000 for the first time Monday, Chris Hyzy said that the stock market is just five years into a 20-year bull market.

"I know it sounds easy to say," U.S. Trust's chief investment officer said on CNBC's "Halftime Report." "When you really think about this, this is an elongated business cycle. You're going to have fair value through most of it. You're not going to get a lot of overvaluation."

Read More Why S&P 2,000 milestone has Art Cashin unimpressed
Hyzy identified what he saw as key for the continued bull market.

"You're going to have some very big opportunities inter-sector and themes. M&A is running wild. But the key to all of this is the manufacturing in the next decade," he said. "It's already happening. You've got energy independence on its way. The private sector's piercing through whatever restrictions are being put out there, and you've got technological advancement that we haven't seen since the early 1990s.

"That sets us up for an elongated business cycle, which is about five years into a pretty long secular market."

Hyzy, who expects GDP growth of 3 percent to 3.25 percent for the United States this year, said that he liked the financial sector best of all, with selected technology and oil-service plays.

Read MoreMarket bear becomes biggest bull on Wall Street

Europe, he added, resembled Japan at the outset of its 20-year deflationary spiral. With credit growth contracting, weakness in Germany and French bond yields below that of the U.S., European Central Bank President Mario Draghi "has to act at some point, and it's a little too late."

"I would argue that the first movement on QE in Europe is a good thing for low-quality assets," Hyzy said. "You'll get the big rally. And then you'll levitate for a while if growth doesn't get there."

—By CNBC's Bruno J. Navarro.

http://video.cnbc.com/gallery/?video=3000305432

Vanguard "They are the king of the hill," - Buffet Says Buy Index Funds Like Vanguard

Vanguard 'king of the hill' thanks to...Buffett
CNBC.com staff    | @CNBC
Thursday, 21 Aug 2014 | 2:14 PM ET

Investors may be warming up to the stock market, but they're taking the safe way in.

Passively managed funds are all the rage now, with market participants enjoying their low cost, high liquidity and tax advantages.

No outfit has benefited more from that approach than Jack Bogle's Vanguard Group, which has seen its total assets under management swell to nearly $3 trillion thanks to the allure of the firm's funds that track market indexes rather than make individual stock picks, according to a Wall Street Journal report.

That low-risk approach has gotten the imprimatur of none other than legendary investor Warren Buffett, who gave the firm his imprimatur a few months back. In his annual letter to shareholders, he advised them to follow the directions in his will, which mandates that his $66 billion fortune be divided with 10 percent in short-term government debt and the rest "in a very low-cost S&P 500 index fund. (I suggest Vanguard's.)."

Since then, the cash has been rolling in as part of a trend toward index investing that has helped other big names in the field such as BlackRock and Dimensional Fund Advisors.

"They are the king of the hill," Michael Rawson, an analyst at Morningstar, told the Journal, which noted that Vanguard's Total Stock Market Index is the largest mutual fund in the world.
Vanguard also holds a prominent place in the exchange-traded fund space, ranking third in assets with $395 billion, behind BlackRock and State Street, according to ETF.com. Its Vanguard FTSE Emerging Markets ETF ranks fourth largest with just over $45 billion in assets.