As the dust settles from Tuesday's market selloff, one investment guru thinks investors should be assured that the fundamental outlook and valuations of U.S. companies are in good shape.
"Our fair value price target at the end of this year is 15/50 on the S&P 500, an increase of 10% from current levels," Abby Joseph Cohen, Chief U.S. Portfolio Strategist of Goldman Sachs, told Dylan Ratigan on "Closing Bell."
And that's conservative, since it also assumes a notable deceleration in economic and profit growth and rising interest rates, Cohen added.
The significant flow of funds and liquidity in the market had reached the riskiest assets and helped trigger the selloff, Cohen said. But despite the recent volatility, the global economy is still looking good and the underpriced U.S market offers "good value in many high quality stocks," meaning companies that generate solid revenue and earnings growth, offer above average returns on equity and have strong balance sheets.