Equities are cheap only on a relative basis, Yahoo! Finance Senior Columnist Mike Santoli said Friday on CNBC.
"Stocks are cheap relative to a lot of other stuff that everyone thinks is very expensive," he said. "Does that mean they're cheap? I'm not really sure."
On "Fast Money," Santoli said that stock valuations weren't going to factor into the recent market rally.
"I do not think that valuation is the thing that would stop the rally. I don't think it's the reason to buy it," he said. "I think it's kind of in that zone where the market can to do what it wants to do because of other forces. "
Santoli added that he didn't think there was one sector that would prove to be a make-or-break factor for the market.
"I've been looking for areas that have lagged badly," he said. "And I think last year you saw these traditional growth stocks, stable growth, that led in the first half of the year, you had a correction. After it, things like emerging markets participating again."
Santoli said that he liked emerging market stocks and related U.S. names.
"I think you could look at a Caterpillar, one of the worst performers in the Dow this year," he said. "It is cheap relative to other metal-bending industrials, even, not just relative to high-flyers."
Trader disclosure: On March 15, 2013, the following stocks and commodities mentioned or intended to be mentioned on CNBC's "Fast Money" were owned by the "Fast Money" traders: Jon Najarian is long stock short calls JPM; Jon Najarian is long BBY; Jon Najarian is long STX; Jon Najarian is long EMC; Jon Najarian is long stock long puts MS; Jon Najarian is long SWN; Pete Najarian is long stock AAPL; Pete Najarian is long calls BAC; Pete Najarian is long calls C; Pete Najarian is long calls JPM; Pete Najarian is long stock INTC; Pete Najarian is long stock YHOO; Pete Najarian is long stock BBRY; Pete Najarian is long stock SBUX; Pete Najarian is long stock FB; Pete Najarian is long stock GOOG; Pete Najarian is long calls FCX; Pete Najarian is long stock MSFT; Joe Terranova is long VRTS; Joe Terranova is long SJM; Joe Terranova is long MJN; Joe Terranova is long SCCO; Joe Terranova is long PANW; Joe Terranova is long VSI; 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; Enis Taner is long GS; Enis Taner is long AMGN; Enis Taner is long AMZN puts; Enis Taner is long SODA call fly; Enis Taner is long CMI put fly.
