Stocks in 2018: The Rally Goes Crazy

Were kicking off a wild week of stock market predictions in style today.

Our first swing at a market forecast for 2018 begins with stocks. Specifically, Im talking about the S&P 500.

Most serious analysts have already said they believe 2018 will be a decent year for equities. The predictions weve read so far peg the S&Ps 2018 performance between 5% – 8%. Another average year for the averages

But thats not what Im seeing.

Yes, I believe the major averages will finish in the green when 2018 ends. But I dont think well see the S&P, Dow Jones Industrial Average, and Nasdaq Composite churn out wimpy, single-digit gains. In fact, I see stocks finishing much, much higher.

My first big prediction for 2018 is that the S&P 500 will finish higher by 20% or more, edging out this years returns to post an incredible two-year run approaching gains of 50%.

I know that might sound crazy especially since so many pundits and analysts are expecting stocks to cool off. But there are a couple of key facts about the current market rally that suggest we are still in the early phases of a melt-up move.

First, its important to note that prior to breaking out to new highs in late 2016, the S&P 500 endured a choppy, two-year stealth bear market that featured major selloffs in speculative names such as biotech and small-cap stocks.

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