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The bull market still has some room to run

Posted at 9:01 AM, Feb 05, 2019
and last updated 2019-02-05 11:01:01-05

The aging bull market will turn 10 years old next month, but the rally may still have some legs left.

Matt McCall, founder and president of Penn Financial Group, thinks the S&P 500 will wind up with gains of about 25% at some point this year. The index is already up nearly 9% so far in 2019.

He’s optimistic because earnings growth, while slowing, is still solid. And McCall adds that the combination of low inflation and a recent shift to a more dovish tone by the Federal Reserve bode well for stocks too.

McCall will be talking about all this and more with CNN Business editor-at-large Richard Quest on the Markets Now live show Wednesday at 12:45 pm ET.

McCall also thinks that trade tension between China and the United States will be settled sooner rather than later, and emerging markets are starting to look more attractive. Diversification will be a key to investing success, he said.

Along those lines, McCall likes a mix of global stocks in a variety of sectors. He is bullish on Swedish telecom equipment company Ericsson, which he thinks could benefit from the controversy surrounding its rival Huawei.

McCall also recommends Ireland-based Aptiv, a company that has developed a fleet of self-driving cars that Lyft uses in Las Vegas. He also recommends Charlotte’s Web, a US maker of organic hemp-based and cannabidiol (CBD) products that are now legal in the United States following the passage of the Farm Bill.

“Markets Now” streams live from the New York Stock Exchange every Wednesday at 12:45 p.m. ET. Hosted by CNN’s business correspondents, the 15-minute program features incisive commentary from experts.

You can watch “Markets Now” at CNN.com/MarketsNow from your desk or on your phone or tablet. If you can’t catch the show live, check out highlights online and through the MarketsNow newsletter, delivered to your inbox every afternoon.