 The stock market is on track for its best year since 2013, but what should we expect from the markets in the new year? Let's bring in Dave Calloway CEO of the street and John Eade CEO of Argus Research and John Dave Let's first establish how you guys know each other college roommates. Is that right? Well, we've known each other since college Scott yeah, we were roommates we can remember when the Dow Jones average was at 1500 Ah and interest rates were double digits long time ago Well, there's a lot to talk about of course. Let's reflect on 2017 it was a much better year than strategist had expected Dave. What are your thoughts? Well, it's yeah Obviously, we were very cautious going into the year with Trump. He told us not to worry turns out We didn't need to worry markets had a remarkable year got the tax plan done Nobody expected that to be done infrastructure coming up next year so from a market perspective if you take away all the other noise and and Scandal and stuff. It's been a remarkable year. John. How about you? Well, Scott? We were in the group that were bullish coming into 2017 right the easy call is to say Mark, it's gonna grow 10% a year because that's what they do. We came out with a 12 to 15 percent forecast for 17 It's obviously doing better than that But looking ahead to 2018 we remain bullish and how do we get to that bullish sentiment? I mean what sectors should you be playing in 2018? Well, the fundamentals are, you know, certainly focused on strong earnings growth Good GDP growth Dave touched on the tax plan That's gonna help earnings and we think interest rates are still gonna remain Historically low, so it'll be a another favorable backdrop for investing in stocks. Dave. It's interesting Of course, we had North Korea worries this year the Mueller investigation yet None of these things move stocks in any meaningful way to the downside Were you surprised by that kind of moves? Not really, Scott You know geopolitical concerns are always there, right? It's it really depends on whether the market is ready to listen or not when it when it's ready It's gonna start to listen to that stuff. The market was singularly focused on Trump achievements since basically taxes this year And it's gonna be focused on infrastructure next year. I think we'll start off the year strong I'm less bullish than John. We may end up the year up I think the midterms are gonna cause considerable angst on Wall Street Especially if we start to see the Democrats picking up some steam in the summer So I'm I think we're gonna finish this year strong Santa Claus Santa Claus rally still to come First quarter could be good and then I think we're gonna start to hit some headwinds. John What do you think? I mean volatility was non-existent as you know in 2017 Do we start to see more swings as we head into the new year? Well, Scott I think it's gonna depend on a few factors, you know one would be What the new Federal Reserve chairman is gonna do we think he'll move deliberately and based on the data But if inflation starts to pick up, you know, we may start to see interest rates rising faster than then We currently anticipate if you see that all bets are off, right the concern about rates And particularly yields bond yields spiking Could really be a a major concern that could create volatility in the new year, right? However, there still is a lot of slack in the labor market So again, that's just a risk that we're looking for and as Dave mentioned earlier You know the market needs to be ready for these risks and right now volatility is so low But that would be a big surprise and you could see that play out in the market. Yeah, you can't expect We've seen a lot of years ups and downs, but this year when we saw 20 25 30 records I mean, we'll probably still got two or three more to go before the end of this year You know, that's unusual. You can't expect that to continue So Dave, what's still the main factor you're gonna be watching in 2018? I'm think I'm gonna be watching the midterms the most obviously there's there's you know the crazy stuff You know the Bitcoin. I mean, I think that's a classic bubble and I love the fact that it everyone's having fun doing Or and I just I worry about that and I worry about the potential systemic implications of it It doesn't look like there's any everyone I asked this as there are none, but it looks like you know I'm worried about that. That's something I'm watching closely employment Obviously like John said as long as that's strong, you know, the economy is going to be pretty good But the market has gone up so far so fast that any sort of increase in volatility spike in bond yields craziness from from north korea Implosion of of a bitcoin bubble could cause Wall Street to start listening to the naked doomsayers again. Yeah. Well, John Dave mentioned bitcoin. What are you telling clients about the cryptocurrency? We're looking more at the fundamentals in the stock markets right now That's really for the speculators and a lot of our clients are really the Long-term buy and hold and so we're telling them to look for Companies that are really growing their dividends at at a double digit pace You don't see that in just a couple of sectors. You can see that Across the marketplace, but that's a good signal for a bright outlook for a company If management is increasing the dividend at least 10% a year All right, we'll be watching how it all plays out But before we go fun fact two other successful roommate combos timie lee jones and al gore Christopher reeve and robber miliams. So there you go guys And time you can be christopher reeve Thanks so much. Thank you. Thanks scott