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Mr. Cote also expected slowing earnings growth to drag down stocks.
Firms cannot run down stocks for ever: eventually, they will empty their warehouses.
Two badly beaten down stocks helped lead the S.& P. 500 index higher.
Some market specialists said her forecast helped drive down stocks on Tuesday.
Concerns about mounting government debt in many European countries have occasionally dragged down stocks around the world throughout the year.
Investors showed few signs that they expected big help from the bank, bidding down stocks in thin Tokyo trading.
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In Dubai and Abu Dhabi, beaten-down stocks of banks and real estate companies rallied sharply.
But, like beaten-down stocks or bonds, reputations can quickly recover.
The Dow Jones industrial average ended a seven-day slide on Tuesday after traders picked up beaten-down stocks.
Some strategists think the extreme stock market disparities of today will soon ease and that beaten-down stocks will recover.
Mr. Schwartz of CIBC Oppenheimer currently prefers beaten-down stocks that trade closer to their lows than their highs.
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