Art Hogan, the Managing Director and Chief Market Strategist for the National Securities Corporation, has raised his end-of-the-year target for the S&P 500. Hogan oversees and manages $34 billion in assets at the corporation. He is bullish on the stock index for the 500 biggest publicly traded companies in the U.S.and is forecasting a 7 percent hike.
He reasons that he feels the new COVID Delta variant cases are peaking and that there was a robust earnings season in the second quarter.
Hogan said, “September gives us a chance to reboot. I actually think we see a pick-up in economic activity in September, and I think that will ward off some of that negative sentiment that we typically get at or about the September month.” Hogan made the comments on the CNBC program, “Trading Nation.”
Hogan raised his target for the S&P from 4,400 to 4,700. The weighted index dropped 15 points on Tuesday and closed at 4,520, less than a percent off from its record-high.
Hogan continued by saying, “this has been one of those years where earnings and earnings expectations continue to grow, and that’s where we’re getting that higher target from.”
Hogan thinks that September could perhaps move in the opposite direction of the negative trends that historically have occurred in September. He hints that the economy’s recovery has been robust amid the monetary, fiscal relief during the pandemic.
Even though there are seasonal ups and downs, Hogan says he is sticking to his game plan.
“Have growth on one end of a barbell,” he said, “and you can express opinions in things like cloud security, 5G, and cloud computing. On the other side of that, you want to be invested in things like financials, industrials, and materials for their economic sensitivity and cyclicality.”