Art Hogan discussed what could be the 'green light to get back into the market'

National Securities’ chief market strategist Art Hogan was on CNBC to discuss the current volatility in the financial markets.

He said we witnessed intraday choppiness in the month of May while the overall markets have been relatively flat for the month. This pattern should continue in the month of June as well. He noted that despite the recent bout of volatility, the broader markets have had a good run up this year so far.

S&P 500, Nasdaq and Dow Jones are up by around 13%, 14% and 7%, respectively, on a year-to-date basis. S&P 500 and Dow Jones are up slightly over the past month while Nasdaq is down 3% over the same timeframe.

Green light to get back in to the market

Hogan said that investors have been concerned about inflation and we have seen the greatest volatility around reports on inflation whether it was the CPI which came in hot a couple of weeks ago and then the PPI. This week, we get the PCE.

Speculative excesses have adjusted on a valuation basis

He also added that the stretched valuations of EV stocks, crypto, reopening trades and technology stocks also added to the wild swings in the markets.

He expects the market choppiness to continue in the month of June while saying:

Hogan had issued a year-end target of 4,300 for S&P 500 at the beginning of the year. It was based on S&P earnings estimate of about $186.