TD Ameritrade says take profits, buy tech shares in 2018

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Traders work on the floor of the New York Stock Exchange (NYSE) at the closing bell, November 30, 2017 in New York City

The other market opportunity could lie in the technology sector, which “still has room to grow,” according to Kinahan, despite the S&P 500 Technology sector already rising almost 38 percent year-to-date.

“You have to be a little more selective, but if you look at the last earnings calls, they’re talking about growth and they’re talking about growth worldwide,” he said.

Facebook, Apple, Amazon, Netflix and Google parent-company Alphabet — the so called FAANG stocks — have contributed the bulk of the S&P 500’s gains in 2017.

Kinahan also said the eventual passage of tax reforms in the U.S. could help the financial sector, some stocks in the tech sector and American multinationals. He still sounded a note of caution on the magnitude of the rally.

“A lot of the expectations have been built in and with that being said, I think the question is: can the reality of what the corporate rate will be, actually live up to the expectations we’ve heard for the last six months or so?”