Forget that bone-crushing stock market reversal on Tuesday, stocks are going higher baby. Just have to trust the process.
Paul Mladjenovic, author of "Stock Investing For Dummies" and "Precious Metals Investing For Dummies," told explained in an interview that recent political reforms in the U.S. could still create tailwinds for stocks.
"I'm generally bullish on the stock market," Mladjenovic said, "especially with the tax act and other fundamentals that are driving it, I think it still has more room for upside." "For 2018...I think the [Dow Jones Industrial Average Index] has a strong chance to hit 26,000 to 27,000," he added.
On the economy, Mladjenovic doesn't think that a collapse is imminent as some analysts have predicted, citing a recent turnaround in macroeconomic forces.
"The economy turned itself around 6 or 12 months ago," he said, "there's a lot more optimism, I'm not looking for an economic collapse any time this year."
Wall Street's super bullishness on the market is easily seen in new data from Bank of America Merrill Lynch. Average cash balances fell from 4.7% in December to 4.4% this month, a five-year low, said the investment bank. Allocation to equities is now at a two-year high, while allocation to bonds has dived to a four-year low.
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This article is commentary by an independent contributor. At the time of publication, the author held TK positions in the stocks mentioned.