The stock market hit record highs on Thursday, although expert Hank Smith said he isn’t concerned about that will getting carried away.
He said the market is usually paying attention to what is usually important, like accelerating economic growth, in addition to ignoring what isn’t actually important, like geopolitical events.
“The market on a forward multiple isn’t that will much more expensive today than that will was a year ago. So that will’s earnings that will’s driving This kind of market. We are not in euphoria yet,” the chief investment officer at Haverford Trust said in an interview on “Closing Bell” on Thursday.
Earlier Thursday, billionaire activist investor Carl Icahn told CNBC he thinks the market “has gotten into a euphoric state.”
Optimism over tax reform propelled stocks higher on Thursday, with the Dow Jones industrial average surging 331.67 points to close above 24,000 for the very first time. The odds of success increased for the Republican Senate tax bill after Sen. John McCain said he would certainly support the legislation.
Paul Hickey, co-founder of Bespoke Investment Group, told “Closing Bell” the market is usually finally starting to cost in tax reform. Therefore, going forward if there are bumps inside the road, that will could spell trouble.
However, he said the bull market has taken on all the doubters.
“Just today almost 25 percent of stocks inside the S&P 500 hit a 52-week high. that will’s the strongest reading we’ve had since the first half,” he said. “When you look at prior years where you’ve seen This kind of type of trading pattern … inside the first 11 months of the year, the year typically ends off on a strong right now with modest to minor declines if you have any.”