Revelers may be ringing in another record year for Wall Street.
Veteran market watcher Art Hogan, chief investment strategist at B. Riley FBR, believes stocks are in the middle of a “spectacular two year run.”
“I don’t think we’re going to see that kind of explosive move in technology. I think that leadership shifts probably over to financials. Financials are clearly a beneficiary of tax reform. They’re a beneficiary of repatriated capital, and I certainly think they’re going to be a beneficiary of a lighter regulatory touch,” Hogan said Friday on CNBC’s “Trading Nation.”
Hogan predicted stocks will surge at least ten percent next year. That would imply a 30-percent gain over just the last two years. His S&P 500 2018 year-end price target is 3000.
“Energy equities and energy commodities seem to have dislocated, and I think they’ll probably come back in unison. I think the commodity market is being driven more by demand than it is by supply,” he said, adding that the business cycle will favor industrial companies, too.
Hogan’s bullish stance hasn’t wavered. He’s been arguing all year that there’s years left in the bull market.
However, that doesn’t mean the markets won’t run into trouble in 2018.
“The one thing we’ll tell you though, we don’t think we’ll get there in a straight line very much like we did this year. I think we’ll probably have to visit some volatility before we get to that end game of 3000 on the S&P 500,” Hogan said.