Here's Paul Schatz's view on US equity markets

Watch the interview of Paul Schatz President, Heritage Capital LLC with Surabhi Upadhyay on CNBC-TV18, in which he shared his reading and outlook on US equity market and Fed rate hike expectations.

Below is the verbatim transcript.Q: It has been a topsy-turvy 24 hours but a day later is there any more clarity, is this equity sell off going to continue?A: Is there any more clarity, no. The Fed has done a very good job of keeping people on both sides of the fence. I have been in the camp of no rate hike all year and the Fed absolutely should not hike rates this year. I thought that before China collapsed and I think it even more so now. So, I will stick in the camp that there is no rate hike this year and the recess in the early 2016. The decline today to me at least the market borrowed the news that the Fed would not hike rates. So, we had a pretty good rally on Tuesday and Wednesday in the market anticipating the Fed that it wouldn't hike rates. So, today it is by the rumour and they are certainly are selling the news hard.Q: But what about the commentary, because we have heard some commentary which can almost be defined as perhaps bearish by some people in the market. With the Fed raising some very clear questions about global growth, not growth in the US, but definitely what is happening around the world?A: So, this statement at least from my memory, it is the first time I can recall the Fed really almost invoking another mandate. So, full employment and price stability has always been the Fed's mandate. All of a sudden we hear the Fed is watching China. I don't think it is outright bearishness. At least for equities in the US we had a pretty hard sell off in the middle end of August and we had a nice reflex rally. We are going to have one more decline, stocks bottom in October and then not only are we going into all time highs but I see DOW 20,000 within nine months from here.