‘I am a monetary theorist. This is what I teach and study. This is unprecedented in 75 years since World War II. I think there is a lot of pent-up liquidity in the market that once the vaccine and pandemic fears fade in 2021, we will see a big boost in business. ”
This is Jeremy Siegel, the Wharton professor credited for calling the Dow 20,000 in 2015, explaining to CNBC in an interview Monday why he believes the stock market is “looking forward to a really good run” next year, regardless of who will take over the White House. .
Siegel explained that the “huge liquidity blast” from the Federal Reserve and Congress will continue to provide a huge breeze for equities.
But the immediate future, he warned, remains precarious.
“It is difficult for me to see, without a stimulus package and with that electoral uncertainty, that there will be a lot of progress between now and the first week of November,” Siegel said. “I think uncertainty will continue to weigh on the markets.”
Well, Monday didn’t weigh on the markets, like the Dow Jones Industrial Average
has risen more than 400 points. The S&P 500
and highly technological Nasdaq Composite
they were also significantly taller.
Watch Siegel’s interview: