Here’s why the market is set to rise another 8 percent: Wells Fargo strategist

More market highs are on the way, according to a Wells Fargo strategist, who added there are a multitude of reasons why investors should still buy stocks.

Scott Wren, senior equity strategist at Wells Fargo Investment Institute, sees the market rallying all the way through 2017. Just how high could markets go?

Wren believes the S&P 500 Index could touch 2,290, and possibly even a little higher by the middle of next year.

"You're talking an excess of 8 percent, and that's why we still like stocks," he said last week on CNBC's "Futures Now."

This is even in light of the uncertainty surrounding November's presidential election.

While investors may be wary of market chaos following the election, Wren actually believes that the anxiety is misplaced based on what he's seen in the past during election time.

"Whatever the result is, the market's going to trade off of that for [two to four] weeks maybe," he said. "But then the market's going to get back to [focusing on] earnings and the economy over the next 6 to 12 months."

He added: "Whoever is president is going to have virtually nothing to do with that, so I think this election effect is going to be very short-lived."

In fact, Wren predicts that the only thing that may stop a market rally in its tracks is a series of rate hikes by the Federal Reserve over the next year.

While Wren sees the Fed raising rates twice between now and the end of 2017, he does believe that the market can weather the event as it has already priced in a December rate hike. But more than two over the next year could give the market an unpleasant surprise.

The S&P 500 traded slightly higher on Friday, paring losses from Thursday when the financial sector brought U.S. markets down fairly significantly.


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