One of Wall Street's biggest bulls is worried that too many retail investors are positioning themselves in a losing trade.

"There's a growth story going on in this world, and investors don't believe it, they're not positioned for it, and they're at risk," Blackstone's Joseph Zidle said Tuesday on CNBC's "Futures Now." "Investors are basically throwing in the towel on growth, they're staying lower for longer, and they're extending maturities and extending durations."

The firm's investment strategist contends it's coming as inflation is appearing everywhere, and will rise as the Fed continues its interest rate hike policy. He believes 2018 will be a year of four hikes.

"We should think about 3.25 percent on the 10-Year Treasury [yield] or 3.50 percent or potentially even higher," Zidle said.

His timeline: by year-end.

According to Zidle, the market is more than equipped to handle higher rates. He cites strong economic and earnings fundamentals. It's a chief reason why his S&P 500 year-end price target is 3,000 — a 12 percent jump from Tuesday's level.

"The correction may not be over. But the good news here is that the underlying fundamentals have not been impacted. This is a market where everyone is worried about the headline risk coming from the trade spat," he said.

Zidle predicts a robust earnings season, which starts Friday, that will boost stocks.

"The data points that really matter to companies continue to flash bullish signals. We've got economies all over the world that are growing," said Zidle. "It's not just a story that's contained to the United States. It's happening all over."

He classifies this market environment as a classic, late cycle bull market.

"You ought to be positioned in cyclicals on the equity side of a portfolio — so, things like industrials, materials, tech, energy and financials," Zidle said. "On a fixed income side of a portfolio, I think it means being in things like floating rate and credit over duration."