Investors may be rejoicing after Wall Street's latest rebound, but Dr Bob Baur, chief economist at giant asset manager Principal Global Investors, which manages more than $US453.5 billion ($574 billion) of assets, warns that they're not out of the woods yet.

"I'm guessing that this correction is over, but I would expect that when US 10-year bond yields head to 3, 3.10, 3.25 per cent, we'll see a bigger correction later this year," Dr Baur said in an exclusive interview with The Australian Financial Review.