{"id":445377,"date":"2017-02-06T20:17:00","date_gmt":"2017-02-06T16:17:00","guid":{"rendered":"http:\/\/nhub.news\/?p=445377"},"modified":"2017-02-07T10:51:10","modified_gmt":"2017-02-07T08:51:10","slug":"market-is-about-10-overvalued-portfolio-manager-says","status":"publish","type":"post","link":"http:\/\/nhub.news\/fr\/2017\/02\/market-is-about-10-overvalued-portfolio-manager-says\/","title":{"rendered":"Market is about 10% overvalued, portfolio manager says"},"content":{"rendered":"

$\"NewsHub\"$ Even if President Donald Trump’ s tax policies are enacted, the U. S. stock market is still \u00ab\u00a0not a great risk-reward for investors,\u00a0\u00bb expert Michael Liss told CNBC on Monday.
That’s because as it stands right now, the market is roughly 10 percent overvalued, he noted.
\u00ab\u00a0If you take the pro-growth aspects of President Trump’s agenda \u2014 so that’s lower individual tax rates, lower corporate tax rates and less government regulation \u2014 if you were able to implement them instantaneously, we think that corporate profits would be roughly 10 percent higher. Still, that would just get the market to fair value,\u00a0\u00bb the senior portfolio manager at American Century Investments said in an interview with \u00a0\u00bb Closing Bell. \u00a0\u00bb
The stock market has moved higher since Trump’s victory, as investors cheered his promises of tax cuts, deregulation and fiscal stimulus.
However, concerns about how long it will take to enact that agenda are now weighing on the market .
And that focus on policy is going to continue to keep people on edge, said Rebecca Patterson, chief investment officer at Bessemer Trust.
However, economic data are good and improving, and corporate earnings are decent, she told \u00ab\u00a0Closing Bell. \u00a0\u00bb
\u00ab\u00a0It’s going to be a year of tango. We go two steps forward, one step back,\u00a0\u00bb she said. \u00ab\u00a0We still think the equity market ends higher this year but it’s going to be a choppy year. \u00a0\u00bb
For David Waddell, CEO of Waddell & Associates, what really matters is earnings. FactSet is predicting earnings will be 20 percent higher by the end of 2018, he noted.
\u00ab\u00a0That number doesn’t bake in any tax reform. It doesn’t bake in any deregulation. It doesn’t bake in any repatriation,\u00a0\u00bb he told \u00ab\u00a0Closing Bell. \u00a0\u00bb
He thinks people contemplating investment decisions should ignore the political noise right now.
\u00ab\u00a0Trying to figure out, while we’re going through this political acclimation season, when to get in, to me, is futile. I want to own stocks now because of what I expect by 12\/31\/18. \u00a0\u00bb
Disclaimer<\/p>\n

Sentiment rank: -1.1<\/div>\n

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