Laszlo Birinyi Jr., president, Birinyi Associates, told CNBC’s “Closing Bell” that earnings are more important than inflation or energy prices when sizing up stocks.
“We’ve done a lot of studies on market cycles and were surprised how much more important earnings are than, say, interest rates,” Birinyi said Thursday. “It’s not necessarily the earnings per se, but expected earnings.”
However, he said a downbeat earnings forecast shouldn’t spike interest in equities.
“I’m not terribly disappointed by the fact that most people are looking for a slowdown in earnings because that should be factored into the market,” he said.