ICON's Callahan: 'Underpriced' market has room and reason to run

Craig Callahan, chief executive officer at ICON Advisers, says that his calculations on the stock market show that despite being near record-high levels, the market is "slightly underpriced relative to fair value," meaning it has room to move higher from here. Callahan says that a small-cap rally and market changes that started to surface a year ago were disrupted by the tariff tantrum but should return in the next year. Moreover, he sees continued economic growth, fueled by strong earnings and growth of the money supply rather than reduction in interest rates, which he says should be enough to support gains even while investors worry about downdrafts, corrections and recessions that he does not think are on the immediate horizon.

Dave Sekera, chief U.S. market strategist for Morningstar, brings the firm's bottoms-up fundamentals-focused, discounted-cash-flow analysis system to the Market Call.

Kenneth Burdon, an attorney with Simpson Thacher and Bartlett, discusses a court case between a closed-end fund activist investor and four fund sponsors that has made it to the U.S. Supreme Court and that could change the face of activism and the ability for investors to force a fund's board to take steps to narrow discounts and improve its investment prospects. Because investors often buy closed-end funds at a discount hoping to profit when that pricing discrepancy corrects, the suit could impact the way investors view discounts and a fund's prospects for future gains.