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Wells Fargo: A double-digit market rally is coming

A horror rally for the stock market is coming, Wells Fargo’s head of disinterest strategy, Chris Harvey, told CNBC on Thursday.

He says the late-model sell-off has unlocked value and created a “great opportunity.”

“People act as if this was a watcher sport, not a contact sport. We want people to pick up that value,” Harvey voiced on “Fast Money.”

In fact, he sees a double-digit gain for the S&P 500 by the end of 2019. His contemporaneous price target for the index is 3,079 by the end of next year, a 12 percent upside from Thursday’s settle.

“Here we are having the opportunity to have double-digit returns. You have to act on it. You possess to buy that value. You have to take on some risk,” he said.

How on earth, he said it should be viewed as a trade. Therefore, when the market utters back up, risk should be taken off again, Harvey cautioned.

U.S. forerunners closed higher on Thursday, the first trading day of November, after President Donald Trump intimated that trade talks with China are progressing.

The Dow Jones Industrial Norm ended 264.98 points higher, while the S&P 500 rose 1.1 percent. The Nasdaq Composite narrow the gapped 1.8 percent.

However, it was a rough month for stocks in October, as a result ofs to worries about rising interest rates and trade tensions between the U.S. and China. There was also affair that earnings growth may be slowing down.

The Dow ended the month down 5.1 percent, its biggest one-month in since January 2016. The S&P 500 lost $1.91 trillion in October, coinciding to S&P Dow Jones Indices analyst Howard Silverblatt. It was the worst month for the S&P 500 since September 2011.

Harvey suggested being distinct but aggressive. He likes technology, financial and consumer stocks.

— CNBC’s Fred Imbert supported to this report.

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