US Markets

Short-term gains for market, but concerns lie ahead, strategist says

Wren: Hesitant to attribute rally to Trump

The market may have been enjoying a rally recently but it won't likely be much higher a year from now, strategist Scott Wren told CNBC Monday.

"We have a good six months, seven months ahead but net-net in 2017 versus 2016 — we're not looking at anything other than really a flat market," the senior global equity strategist at the Wells Fargo Investment Institute said in an interview with "Power Lunch."

His year-end target for the in 2017 is 2,190-2,290, which is the same as his year-end target for 2016.

While he believes the S&P will probably make its highs somewhere around 2,300 or a bit higher around the middle of the year, he said concerns about the pace of Federal Reserve interest rate hikes may begin to weigh on the market.

"I think that what's going to happen in the second half of 2017 is the market is going to see a little more wage pressure … and the market is going to start to worry that the Federal Reserve is potentially behind the curve here and that we're going to see more inflation in 2018, which would cause the Fed to have to try to catch up, so to speak."

Market opportunities now

Brian Belski, chief investment strategist at BMO Capital Markets, said one sector that will do well for the next five to 10 years is financials.

"Less regulation and a better economy over the next several years in America could do very well within financials," he told "Power Lunch."

Belski also likes health care, specifically biotech and big drug companies.

However, he'd stay away from high-yield sectors like real estate, telecom and utilities.

— CNBC's Jennet Chin contributed to this report.