Tax reform ‘not fully priced in’, as well as the item could be the spark in which extends the rally, Russell’s Doug Gordon says

Russell Investments’ Doug Gordon sees a catalyst in which could prolong the bull run.

He believes the odds of a Republican tax reform plan becoming a reality is actually rising, as well as the markets may just be starting to realize the item.

“Once we got the budget passed, in which was an important hurdle,” the firm’s senior portfolio manager said This kind of week on CNBC’s “Trading Nation.”I don’t think we contain the item [tax reform] fully priced in as of yet.”

Gordon’s comments came as stocks were rallying to another historic close. All three indexes — the Dow, S&P 500 Index as well as Nasdaq — closed at record highs. The S&P 500 as well as Dow have today seen six weeks in a row of gains.

Even though Gordon predicted there’s more upside left in This kind of bull market, he acknowledged in which the item has moved into the late stages — as well as said the item’s vital for investors to be prepared.

“We could get those irrational exuberance kind of moments. I don’t think we’re quite there yet, although the item certainly makes an investor’s best decision to be decision to be diversified,” he added.

Gordon, who manages portfolios for private as well as public pension funds, has zeroed in on a few spots which could reap solid gains for investors.

He likes little cap stocks, noting the group could emerge as big winners if tax reform is actually ultimately passed.

Gordon also favors going outside the country for opportunities.

“Right today, we think non-U.S. developed equities look modestly more attractive than U.S. equity markets,” Gordon said, citing better valuations.

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