During the CNBC ‘Trading Nation’ show, Hogan noted the near-term turbulence would hit all markets, including bitcoin, stocks, and even SPACs. The strategist tied the current volatility to inflation worries but acknowledged that the stock market had managed the swings well, considering the Dow Jones index is up 2% in May while the S&P 500 has remained flat. However, the Nasdaq index that entails most tech companies, has plunged 2%.
Inflation’s role in current market swings
Hogan stated that most market swings occur in correlation with inflation reports. Notably, the April inflation surged to a 12 year high amid the rising energy prices. The Consumer Price Index increased 4.2% from a year earlier. He added that cryptocurrencies, technology, and SPACs are playing a key role in the market swings amid stretched valuations alongside speculations. For investors, Hogan advises focusing on a long-term portfolio without engaging in aggressive trades regardless of the risks. Elsewhere, Hogan projects that the S&P 500 index will potentially surpass his initial l year-end target of 4,300.
