Peter Morici is an American economist and Professor of International Business at the R.H. Smith School of Business at the University of Maryland. Morici is regarded as one of the top economists in the US today.
On Friday Peter Morici joined Stuart Varney to discuss the current stock market rally. The US stock market hit another record on Thursday. Since the 2016 election the Dow is up more than 7,200 points or 39% with nearly every third day a new all time high. Peter Morici expects the stock market to pick up another 10-20 percent in value in the next six months.
Peter Morici: Not only has the earnings rally been supported by earnings as opposed to some sort of bubble but it’s actually behind earnings. There’s every reason to believe the stock market between now and June should pick up another ten to twenty percent in valuation if it is to keep up with just the historical average. Historically the S&P over 25 years, the price earning ratio is 25. Right now it’s below that… Profits may grow another 10% this quarter.