Cresset's Ablin: Valuations say 'Sell,' but momentum says 'Buy'

Money Life with Chuck Jaffe

Jack Ablin, chief investment officer at Cresset Capital Management, says that the market is about 25 percent overvalued, but the momentum of the market suggests that investors shouldn't worry about an immediate downturn. Ablin says that traditional value metrics show the overvaluation and says that lofty prices eventually meet up with momentum that gets exhausted, leading to "a pretty good exit point." But he notes that "Value is always early," and there "still a lot more room" for the market to run before it rolls over. In the Talking Technicals segment, Gene Peroni, founder of Peroni Portfolio Advisors, also sees the market's potential for downturn, but he says that the market has effectively ignored Wall Street adages, cyclical and seasonal factors, psychological considerations and has moved to its own beat, with a strong technical foundation that should enable it to weather storms and turn any potential downturns into buying opportunities. In the Money Life Market Call, Andrey Kutusov, portfolio manager at Seven Canyons Advisors, talks high-growth small-cap international/emerging markets stocks.