NEW YORK (TheStreet) - As the S&P 500 (SPY) continues its march higher, up 0.6% on Tuesday, it may seem tempting to lock in profits, but the CNBC "Fast Money Halftime" trading panel sees no reason to sell U.S. stocks.
Investors could make the case that stocks are slightly overvalued near current levels, said Josh Brown, CEO and co-founder of Ritholtz Wealth Management. But that doesn't mean it's time to sell. Stocks are doing well because the economy is strong and is expected to remain strong.
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Let's not forget, the U.S. has suffered two disastrous bear markets since 2000, Brown added. So it's not like stocks continue to add on gains to a market that has been strong for the past decade. European stocks are also attractive heading into 2015, he said.
If the Federal Reserve decides to raise rates, it may be a negative catalyst, but it's not like it's an unknown event. Jon Najarian, co-founder of optionmonster.com and trademonster.com, pointed out that the Fed has been very open in communicating that the earliest rate hike would likely come sometime in mid-2015.
Najarian also said investors should be looking at U.S. Treasuries over other countries' debt with similar yields, like Spain and Italy. The yields may be similar, but the credit quality is not, he said.
Although other regions like Europe and India have cheap equities based on valuation, U.S. stocks shouldn't be sold due solely to price appreciation over the past few years, said Stephanie Link, chief investment officer of TheStreet and co-manager of the Action Alerts PLUS portfolio. That's because the economy remains strong.
Volatility will likely increase in 2015, she said. But higher interest rates would be justified given the strong economic data. Toll Brothers (TOL) is attractive near current levels. The stock is down 6% on the year, but recently pre-announced positive orders and sales. General Motors (GM) , Ford (F) and Lear (LEA) all have low valuations and compelling reasons to own them too, she added.