The stock market is poised to reach new levels, Federated Investors Global Equities CIO Steve Auth said Thursday on CNBC.
"I think too many people feel like you've got to get an acceleration of the fundamentals to get the market to go higher," he said. "We think, actually, what this rally is about is investors finally figuring out that 2008-2009 was a five-standard-deviation, one-in-a-hundred-year event."
On "Fast Money," Auth said that investors were waiting for bad news not likely to appear soon.
"They keep waiting for another big tail risk. That's why they haven't been able to put a multiple on equities that equities deserve for the fundamentals we have right now," he said. "We think the stock market should be trading at 17-18 times."
Auth, who has a year-end target of 1,660 for the S&P 500, said that he looked to one sector that seemed to have the most to gain.
"We want to be in cyclical because those are the areas that have been hit the hardest, and if you think the world's not going to end and the global economy is going to continue to expand mildly over the next three to five years, which we do believe, those are the areas you'd like to own here," he said.
Trader disclosure: On Feb. 28, 2013, the following stocks and commodities mentioned or intended to be mentioned on CNBC's "Fast Money" were owned by the "Fast Money" traders: Joe Terranova is long VRTS; Joe Terranova is long SJM; Joe Terranova is long MJN; Joe Terranova is long AXP; Joe Terranova is long GPS; Joe Terranova is long KORS; Joe Terranova is long GS; Joe Terranova is long SWN; Josh Brown is long AAPL; Josh Brown is long C; Josh Brown is long JPM; Josh Brown is long WFC; Josh Brown is long GLD; Josh Brown is long XLU; Josh Brown is long WMT; Josh Brown is long TGT; Josh Brown is long GOOG; Mike Murphy on FB; Stephanie Link is long AAPL; Stephanie Link is long GS; Stephanie Link is long CSCO; Stephanie Link is long SBUX; Stephanie Link is long FB; Stephanie Link is long STI; Stephanie Link is long KEY; Steve Grasso is long AAPL; Steve Grasso is long ASTM; Steve Grasso is long BA; Steve Grasso is long GOOG; Steve Grasso is long GDX; Steve Grasso is long LF; Steve Grasso is long LNG; Steve Grasso is long MHY; Steve Grasso is long PXD; Steve Grasso is long NVIV; Steve Grasso is long PFE; Steve Grasso is long S; Steve Grasso is long VLO; Steve Grasso is funds long HPQ; Steve Grasso is funds long ZNGA; Steve Grasso is funds long HD; Steve Grasso is funds long BRCM; Steve Grasso is funds long MA.
