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The markets don't care about Trump's threats of 'fire and fury,' experts say

  • The markets don't think Trump's threats about retaliation against North Korea are "news that matters," experts said.
  • Buying during the dip pays off according to Lamar Villere of Villere & Co., who recommended investors target overlooked companies that have growth prospects.

President Donald Trump's warning to North Korea of "fire and fury" has not fazed the markets, according to experts.

Trump on Tuesday during a meeting about opioids at his golf club in New Jersey cautioned North Korea that it would face "fire and fury like the world has never seen" if it continued to threaten the U.S. The markets, however, barely budged in response, leading experts to ponder that apparent apathy.

"I think they're focused on the news that matters, and the news that matters is not necessarily North Korea," David Nelson, chief strategist at Belpointe Asset Management, said Wednesday on CNBC's "Power Lunch." "If I pulled out every time I had a geopolitical event on some corner of the planet, I'd never be in the market."

Nelson said, "The important things for stocks [...] are simply economic," with equities only being affected with something that "translates to an economic event."

These observations come amid "a pretty good earnings season right now," according to Nelson, with industrial companies who aren't "just the Amazons of the world" reporting "blockbuster" earnings, top-line growth and reinvestment in themselves.

"The investors have learned to buy the dip here and it's paid off," Nelson.

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Buyers have indeed jumped at past events like this, according to Lamar Villere, portfolio manager at Villere & Co., who said events like Brexit, the financial crisis and the 9/11 attacks have proven that "investors who buy on the dip are doing better."

During this time, investors should target overlooked companies that "have not run so far," Villere said Wednesday on "Power Lunch." This means taking advantage of companies that have great growth prospects that "really have been left behind in this market rally."

In fact, Trump's statements don't "actually get us closer to war," according to Steve Grasso, director of institutional sales at Stuart Frankel. The snail-paced reaction from the markets means "the market's not telling us there's any real increase in risk," he said in an interview on "Power Lunch."

"This doesn't actually get us any closer to war," Grasso said. "We know what North Korea does; this is a page out of their playbook. We sort of know what President Trump does; this is sort of a page out of his playbook. It hasn't really translated to a massive amount of volatility."

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WATCH: Stocks slide as North Korea-related tensions rise