Market Isn't Over-Priced Despite Slowing Economy, Analyst Says
Scott Kays, president of Kays Financial Advisory, told CNBC’s “Closing Bell” that the equities market isn’t overpriced.
“What a lot of people have missed is that this market is not over-valued despite the strong trend upward we’ve had over the last several months,” Kays said Friday. “Earnings have been very strong. The P/E ratio is very reasonable. Even though the economy has slowed down, it still appears to be solid in 2% to 3% range going forward. I think conditions are good right now.”
Michael Darda, chief economist at MKM Partners, said he expects GDP growth to be below 3% in first half of the year, but above 3% in second half as sub-prime mortgage problems ease.
“I don’t think core inflation is going to be rolling over anytime soon,” Darda said. “Ultimately, that will probably drag the Fed back into rate-hike mode.”