Record rally has fuel for another three to six months, Wilmington Trust's Meghan Shue predicts

Record rally has further to run, Wilmington Trust's Meghan Shue says

The juice hasn't been squeezed out of this rally yet, according to Wilmington Trust's Meghan Shue.

She believes stocks will gain another 5% to 7% over the next three to six months.

Shue's forecast implies the S&P 500 could rise as high as 3,430.

"We are still constructive on the equity market and overall economy. We've certainly had a very good run at this point. The fourth quarter is shaping up very nicely," the firm's senior investment strategist told CNBC's "Trading Nation" on Thursday. "There's further to go even with valuations little bit more elevated at this point.

Shue lists supportive central banks around the world, easing trade tensions and improved growth out of China for her optimism.

"Those three things, we think, can generate gains for the market going forward," said Shue, who is also a CNBC contributor.

But once 2020's second half gets underway, Shue suggests the market will run into trouble due to uncertainty surrounding the presidential election.

"You really only have a very small sample size, but on average, when the election looks to be fairly close, the market hits the pause button a few months before," she said. "So, we would not be surprised if the bulk of the market gains for 2020 occur in the first half of the year, and then we see a little bit of treading water into the election as basically investors just sort of hang out and wait for a little bit more clarity."

Regardless, she still wants to put money to work right now. Shue, who oversees $107 billion in assets under management, has been taking on risk.

"We recently over the last couple of months taken an overweight to technology, an overweight to industrials and underweighting some of those more defensive sectors like staples and utilities," Shue said.


2020's biggest gains will be in the year's first half: Wilmington Trust's Meghan Shue