Stocks to rally 10 percent or more in 2018, Wall Street veteran Art Hogan predicts

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."

He sees financials, energy and industrials leading the gains in 2018 as technology begins to take a back seat.

"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.

Vote to see results
Total Votes:

Not a Scientific Survey. Results may not total 100% due to rounding.


Trades to Watch

Trader Bios


Trading Nation is a multimedia financial news program that shows investors and traders how to use the news of the day to their advantage. This is where experts from across the financial world – including macro strategists, technical analysts, stock-pickers, and traders who specialize in options, currencies, and fixed income – come together to find the best ways to capitalize on recent developments in the market. Trading Nation: Where headlines become opportunities.

Sara Eisen

Sara Eisen joined CNBC in December 2013 as a correspondent, focusing on the global consumer. She is co-anchor of the 10AM ET hour of CNBC's "Squawk on the Street" (M-F, 9AM-11AM ET), broadcast from Post 9 at the New York Stock Exchange.

In March 2018, Eisen was named co-anchor of CNBC's "Power Lunch" (M-F, 1PM-3PM ET), which broadcasts from CNBC Global Headquarters in Englewood Cliffs, N.J.

Read more