Columbia Threadneedle's Bahuguna: Everything now hinges on the Fed

Anwiti Bahuguna, head of multi-asset strategy at Columbia Threadneedle Investments -- senior portfolio manager of the Columbia Thermostat Fund -- says that the sell-off in stocks has not been the result of bad earnings reports, but rather has been driven by multiple compression, and until investors are willing to pay more for earnings, the stock and bond markets will be muted at best. Investors won't likely come around until the Federal Reserve signals its intentions on whether it will continue or halt its program of interest rates hikes; until that is clear, Bahuguna says there's too much uncertainty to be anything more than neutral about current conditions. Also on the show, Dave Sekera, chief U.S. market strategist at Morningstar, says in the Market Call segment that the market's woes have pushed a lot of stock valuations attractively below fair-value estimates, making stocks like Meta Platforms, Google, the communications industry and much more into attractive buying ranges, noting that while investors may have to be patient to wait for the payoff, he expects patience to be rewarded based on the discounts he says that the market has been applying to many company. Plus, Ed Carson, news editor at Investor's Business Daily discusses the latest IBD/TIPP Economic Optimism Index and explains why he thinks the measure is showing that investors have reached a point where there is hardly any optimism at all.