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Market Has More Room to Run, Analyst Says

Mike Malone, equity and trading analyst for Cowen and Co., told CNBC’s “Closing Bell” that he remains bullish despite downbeat economic news at home and in China.

“I think with the S&P 500 trading at about 15.5 times 2007 earnings, I’d say there’s already a lot of risk discounted in this market,” Malone said Thursday. “With the 10-year (bond) yield at 4.5%, global growth healthy, and U.S. growth relatively healthy, I think earnings growth will remain in the mid- to high-single digits. I think that all warrants further gains for the equity markets. I think you will continue to see earnings growth and some multiple expansion.”

Peter Boockvar, equity strategist for Miller Taback, said the market’s concern about China growing too fast was misplaced, but investors should be concerned with the U.S. economy slowing too much.

He said next week’s GDP number may be below 2% for the first time since 2003.

“(U.S.) markets have shown strength on the hope (that) the housing market has stabilized, the hope that the labor market will remain strong, (and) the hope that the consumer is not going to fall off a cliff,” Boockvar said. “I don’t think these hopes are going to be realized.”