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Pro: It'd Be A Mistake For Investors To 'Hit The Exits' Now

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Pro: It'd Be A Mistake For Investors To 'Hit The Exits' Now

The "Trump Rally" has made many investors richer, and as the major stock indices are trading near historical all-time highs, now is the right time to cash in on the profitable investments, right?

Not necessarily, at least according to Wunderlich's chief market strategist, Art Hogan. One of the most respected Wall Street strategist was a guest on CNBC's "Trading Nation" to explain why it is a mistake for investors to "hit the exits" at this time.

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After enduring an "emotional" financial crisis, investors have naturally become skeptical of any rally in stocks, Hogan explained. Every 10-percent move higher since March 2009 has been questioned by investors who think the market has moved up to quickly and a dip is imminent. Yet years later, investors who felt this way were proven wrong; despite this, the sentiment still holds true to this day.

"We still have people saying [today] that we have come too far too fast and Wall Street doesn't reflect Main Street," Hogan said. "It's all sort of things that at the end of the day don't really matter — what really matters is Corporate America earning more money next year than they earned last year."

Full Steam Ahead?

Despite the lack of confidence in stocks among some on Main Street, Hogan believes the stock market rally is sustainable as bull markets don't "die of old age."

Meanwhile, the current bull market isn't the most notable in history. Looking at the four biggest bull markets in terms of duration and percentage gains, the current cycle is merely in third place on the list," Hogan emphasized. As such, it would be wrong to think that the stock market has "run out of runway."

"The fundamental backdrop is good, both on earnings and the economic data in general," Hogan added. "That will continue to be a driver here."

Finally, Hogan suggested that business friendly policies from the White House are unlikely to be seen until 2018 — and that's not a bad thing as the stock market doesn't "need it until then to begin with."

Bottom line, now is not the time "to hit the exits."

Related Links:

Financial Stocks Are Now Red For 2017, But Some Analysts See More Pain Ahead

Raymond James' Saut Thinks Investors Are 'Profoundly Underinvested' In Stocks

Posted-In: Art Hogan CNBC CNBC financial crisis Trading NationTop Stories Markets Media Best of Benzinga

 

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