Don't Worry About Stocks' Technical Highs: Strategist

Expectations of a second round of asset-buying, or quantitative easing, implemented by the Federal Reserve are nothing but good news for the stock market, Simon Maughan, co-head of European equities at MF Global, told CNBC.

Investors shouldn’t be concerned about trading near technical highs because “quantitative easing will take them through those,” he added.

The minutes from the Fed’s September meeting released Tuesday have some investors worried about the effects of a new policy to support the U.S. economy.

“The committee will continue to monitor the economic outlook and financial developments and is prepared to provide additional accommodation if needed,” the report said.

“Where’s the bad news?” said Maughan, whose company has been trading on the assumption that quantitative easing will continue for several weeks now.

“If quantitative easing is going to come it's going to bring us more liquidity, people are going to apply more leverage to the market, and they're going to be backing winning stocks,” he said.

The second round of asset-buying will not change anything in particular in the stock market, but "what it does is put momentum behind strong stories,” he added.

Maughan pointed to Europe as an area that should have little concern, saying stock market performance hasn’t been great this year, but Europe has “done reasonably well.”

The euro added to recent gains against the dollar after the Fed's minutes were released.