Al Goldman, chief market strategist for A.G. Edwards, told CNBC’s “Closing Bell” that the stock market’s performance has been “very impressive” despite downbeat economic news.
“The market has had multiple excuses to pull back, particularly after the biggest jump in the Dow this year,” Goldman said Thursday. “(We’ve had) higher interest rates and higher oil prices. Things aren’t going great in the Middle East and yet the market is up, up and away, which means there’s (cash on the sidelines) that feels like they’re missing the boat and momentum breeds momentum.”
Goldman said he believed yields on the 10-year Treasury could go as high as 5.5% without disrupting the stock market.
“These rates are still historically low,” Goldman said. “But if we got up close to 6%, we’d have a bit of a problem in the stock market, I think.”
Owen Fitzpatrick, managing director of U.S. Equity Group for Deutsche Bank Private Wealth Management, said economic growth remains strong worldwide. This benefits U.S. companies that do business overseas.
He said U.S. equities aren’t overvalued, multiples haven’t been stretched, inflation is under control and earnings growth remains strong.