Stock market could be tough in coming weeks, but 2021 will be a different story, says Wharton professor

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“I am a monetary theorist. This is what I teach and study. This is unprecedented for 75 years, since World War II. I think there’s a lot of suppressed liquidity in the market that once vaccine and pandemic fears subside in 2021, we’re going to see a big increase in activity.
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It’s Jeremy Siegel, the Wharton professor credited with calling Dow 20,000 in 2015, explaining to CNBC in an interview Monday why he thinks the stock market is “looking forward to a really good” run next year, no matter what. or the candidate for the White House. .

Siegel explained that the “huge liquidity explosion” from the Federal Reserve and Congress will continue to provide a huge tailwind for stocks.

But, the immediate future, he warned, remains precarious. “It’s hard for me to see, without a stimulus package and with this electoral uncertainty, that there will be a lot of progress by the first week of November,” Siegel said. “I think the uncertainty will continue to weigh on the markets.”

Well that wasn’t weighing on the markets on Monday like the DJIA Dow Jones Industrial Average
+ 1,50%
jumped over 400 points. The S&P 500 SPX,
+ 1,61%
and Nasdaq Composite COMP, at the cutting edge of technology,
+ 1,86%
were also firmly higher.

Watch Siegel’s interview:

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