Stocks are 'absolutely' overpriced, but it doesn't matter, says Empire Executions' Peter Costa

  • Stocks are overpriced, but that may not be a problem, Peter Costa, president of Empire Executions, told CNBC on Tuesday.
  • "There's a confluence of really good things," he said.

Stocks are overpriced, but that may not be a problem, Peter Costa, president of Empire Executions, told CNBC on Tuesday.

It seems that no matter what, the market continues to drive higher and higher. On Tuesday, the S&P 500, the Dow Jones industrial average, the Nasdaq composite and the Russell 2000 all closed at record highs.

"There's a confluence of really good things. There's good earnings, [and] low interest rates, even with the rate hike next week or next month or whenever it is. You've got a really good environment for stocks," Costa said on CNBC's "Closing Bell."

This environment also means that stocks are "absolutely" overpriced, Costa said.

JPMorgan Chief Global Strategist David Kelly agreed, saying, "We're pricing in a lot of optimism here."

Still, Costa said, "I don't know if overpriced is an issue anymore."

Although hiccups are inevitable, he continued, "I don't think there's anything within the next couple of months that we're going to see that's going to slow [the market] down."