Finance

Market’s Fed cut ‘obsession’ is smoke and mirrors: Dean of valuation

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The Fed rate cut craze is overblown, according to the man known as the “dean of valuation.”

As investors watch every move made by the U.S. central bank, with traders seeing a 100% probability of a July interest rate reduction, they’re losing sight of what really matters for markets, said Aswath Damodaran, finance professor at New York University’s Stern School of Business.

“The Fed obsession is a little strange to me,” the valuation expert told CNBC’s “Fast Money” on Wednesday. “We’ve gone through waves of this Fed-watching for the last decade and, looking back, I think it’s more smoke than any real effect.”

From his perspective, what should matter for stocks more than monetary policy…



Source cnbc.com

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