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S&P Headed to 2,300 in 2016: Expert

"China: not that earth-shaking"

Markets may have started the year in the red, but Yardeni Research President Edward Yardeni thinks the downward move is meaningless. On the "Halftime Report" today he argued that earnings will grow and current risks are being overstated.

News out of China contributed to a market sell-off this morning, but Yardeni argues that the apparent weakness in the PMI was not, in fact, all that "earth-shaking."

The so-called F.A.N.G. (Facebook, Amazon, Netflix, Google) stocks also traded down today after posting strong gains in 2015. But here, too, Yardeni doesn't find cause to worry. He believes "tax reasons" may be behind the stocks moving lower and says he remains bullish on discretionary stocks.

Finally, he thinks the $2 trillion saved worldwide on cheaper oil will lead to a stimulus in the economy, driving the S&P to 2,300 in 2016.

Trader disclosure: On January 4, 2016 the following stocks and commodities mentioned or intended to be mentioned on CNBC's "Halftime Report" were owned by the "Halftime Report" traders:

Jon Najarian: Long SDS. Long calls ACHN, ALB, AMLP,ASNA, BWLD, GPS, KSS LB, MDLZ, MSFT, RGR, TGT

Josh Brown: Long AAPL, BABA, DE, DNKN, FB, JMBA, LOW,NFLX, SAM, SHAK, SPWR, TWTR, XLE, XON

Joe Terranova: Long VRTS

Jim Lebenthal: Long AAPL, BA, C, CSCO, DCO, EEQ, GAIA, GM, INTC, JCP, KMI, MPC, OA, ORBC, PFE,QCOM, QRVO, SPLS, TIF, TRN, WGO