The stock market has reached a bottom following a tumultuous 10 weeks that's seen the in and out of correction territory, longtime strategist Jeff Saut told CNBC on Thursday.

"On Oct. 2, we had on our short-term model a sell signal and we told people if you have trading positions you should sell," said the chief investment strategist at Raymond James. "And we have put some of that money back to work."

"People are underinvested" in stocks, Saut said, citing his belief that the U.S. economy is not going to slow as much as expected and earnings will be strong next quarter.

Saut appeared on "Squawk Box" as U.S. stock futures Thursday morning were alternating between gains and losses. On Wednesday, the Dow Jones Industrial Average and S&P 500 each notched a second positive session in three. However, both indexes were still negative for the year, with the S&P 500 barely out of a correction.

Drawing on a finance career spanning more than four decades, Saut predicts two interest rate increases from the Federal Reserve in 2019, even as other Wall Street analysts expect a slowing in hikes next year.