The stock market rally has paused amid uncertainty around President Donald Trump ‘s policies, but investors shouldn’t be too concerned, expert Ken Moraif told CNBC on Monday.
In fact, he thinks this is a buying opportunity.
“The eventual result of reduced taxes and regulations are going to benefit employers. They’re going to give them more money to grow and we’re going to see the stock market benefit from that,” the senior advisor at wealth management and investment firm Money Matters said in an interview with ” Closing Bell. ”
While investors are concerned about the “devils in the details” right now, “going forward we will see all-time highs happen again,” Moraif added.
U. S. stocks closed lower Monday , although they were off session lows.
Moraif said the opportunities lay in the industries that are the highest taxed and most regulated, because their profits will increase once Trump’s tax cuts and deregulation occur.
Even if just a fraction of the stimulus Trump has talked about is enacted, S&P 500 earnings will move up, said Anthony Chan, chief economist at Chase.
“If he gets everything through and it’s retroactive to the beginning of the year, we can see a huge incremental increase to earnings. How much? As much as 20 percent,” Chan told “Closing Bell. ”
Right now, investors just want a little time to breathe after a big postelection rally, said Steve Grasso, director of institutional sales at Stuart Frankel.
“Everyone had that consensus view of ‘buy the election, sell the inauguration.’ And now people are actually so afraid to actually step in and buy this market,” said Grasso, also a CNBC market analyst.
He told “Closing Bell” he thinks the market will move slightly lower, sideways and then ultimately higher.
