Stocks have another 20 percent to go: Economist

Never mind stock valuations for now, Lord Abbett Senior Economist and Market Strategist Milton Ezrati said Thursday.

"I wouldn't even worry about valuations for another 20 percent," he said. "Not necessarily compressed within any period of time, but from here, yes."

On CNBC's "Fast Money," Ezrati said that he continued to see upside in the market following the Federal Reserve's announcement that it would continue its $85 billion-per-month asset-purchasing program unabated.

(Read more: 'Clear sailing' through the end of the year: Stephen Weiss)

"Well, I think stocks still have a way to go," he said. "I didn't think even if they did taper it would have that much impact."

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Ezrati, who had $135 billion in assets under management, said that the fight in Washington over raising the federal debt ceiling might cause "a little volatility" but added that the Fed's stimulus was supportive of stocks.

"The Fed is continuing to put liquidity into the markets," he said. "The economy is continuing to grow, and equities still represent good value, not as good as they did two years ago but good value."

(Read more: 'Investors were underweight risk': JPM's Tom Lee)

Ezrati said that he preferred cyclical stocks.

"We prefer growth to value in this environment," he said.

(Read more: Jeremy Siegel: 'There's some juice left in this market')

"Even if things remain sluggish, we think that there's enough earnings growth to support the market. Obviously, if we get an acceleration, it's icing on the cake."

By CNBC's Bruno J. Navarro. Follow him on Twitter @Bruno_J_Navarro.

— CNBC's Patricia Martell contributed research to this report.

Trader disclosure: On Sept. 19, 2013, the following stocks and commodities mentioned or intended to be mentioned on CNBC's "Fast Money" were owned by the "Fast Money" traders: Josh Brown is long AAPL; Josh Brown is long VAW; Joe Terranova is long VRTS; Joe Terranova is long MS; Joe Terranova is long GS; Joe Terranova is long OXY; Joe Terranova is long HOS; Joe Terranova is long HAL; Joe Terranova is long APC; Joe Terranova is long SBUX; Joe Terranova is short LTD; Stephanie Link is long AAPL; Stephanie Link is long JPM; Stephanie Link is long WFC; Stephanie Link is long CSCO; Stephanie Link is long FB; Stephanie Link is long LOW; Stephen Weiss is long LCC; Stephen Weiss is long AAMRQ; Stephen Weiss is long DAL; Stephen Weiss is long C; Stephen Weiss is long THC; Stephen Weiss is long CYH; Stephen Weiss is long AAPL CALLS.

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