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Analyst says we are in a 'market of contradictions'

Closing Bell Exchange: Market believes Trump has its back

Larry Glazer, managing partner at Mayflower Advisors, said the current market is one of contradictions, on CNBC's "Closing Bell" on Wednesday.

He said the market continues to move higher despite mixed economic data, dysfunction in Washington and geopolitical turmoil because it's clinging on sentiment.

"The market believes that Trump has their back, they believe that he is pro-business," Glazer said.

President Donald Trump has had several meetings with business leaders that have encouraged stock valuations to rise higher, but Glazer said some investors have taken precautions and made plays outside of the U.S.

"We have seen investors increasingly moving money overseas, starting to migrate money out," Glazer said. "They recognize that unstainable high valuations are not realistic ... so you don't see insider buying here."

Glazer said current valuations cannot be validated until results from Trump policies and other factors show up in company earnings.

"Instead of focusing on the Fed or focusing on Friday's job's report, we need to focus on earnings," Glazer said. "If we are going to keep the market and move it higher. That's what's critical here and that's what's missing."