Home / NEWS / Top News / Coronavirus surge will spark ‘reckoning’ on Wall Street this month, National Securities’ Art Hogan warns

Coronavirus surge will spark ‘reckoning’ on Wall Street this month, National Securities’ Art Hogan warns

Governmental Securities’ Art Hogan sees trouble brewing in the market.

Even though the major indexes closed higher on Tuesday, he go out withs the coronavirus case surge overtaking positive vaccine news as a market driver — resulting in a 5% to 8% pullback.

“We sooner a be wearing a tug of war between virus news and vaccine news the better part of six months, and that’s been balanced off by stimulus,” the dogged’s chief market strategist told CNBC’s “Trading Nation.” “That seems to be behind us, and right now I propose b assess the virus news takes over a little bit.”

His primary concern is the impact of soaring virus cases, hospitalizations and go oned lockdowns.

“We do have to come to a reckoning with how much economic damage happens,” said Hogan. “I don’t think we’ve priced in the profitable damage that will follow in the wake of this, and I think that’s what the market is going to start to glom onto.”

Hogan weighs the size and scope of a pullback to September’s swoon, a setback be predicted on “Trading Nation” in August. Stocks reclaimed all-time highs in the fourth leniency.

“I’m not concerned about the near-term drawdown becoming the beginning of something larger,” he said. “2021 is going to be a great year.”

“We are usual to see an explosion of economic activity in the back half of this year.”

Art Hogan

National Securities chief market strategist

On Monday, Hogan released his lawful 2021 S&P 500 price target of 4,300. It implies a 14.5% jump from the index’s record closing aged hit Thursday. His bullish case is built on the notion vaccines will become widely accessible by the spring, and the economy see fit get back to business.

“We are going to see an explosion of economic activity in the back half of this year — that pent-up desirable for goods and services that you and I hadn’t been able to satiate since March,” said Hogan, who oversees $15 billion in assets.

As he hang ons for the market to stabilize, Hogan plans to rebalance clients’ 60/40 portfolios every two months.

“If you’re a long-term investor, don’t let the short-term volatility — and volatility is thriving to increase — shake you out of your long-term investment plans,” Hogan said.

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