‘I am a monetary theorem. This is what I teach and study. This has been unprecedented in 75 years, since World War II. I think there is a lot of restrictive liquidity in the market that once the vaccine and pandemic fears disappear in 2021, we will see a huge boost in activity. ‘
That’s Jeremy Siegel, the Wharton professor credited with calling the Dow 20,000 in 2015, explaining to CNBC in an interview on Monday why he believes the stock market “expects a really good” run next year , regardless of who will take over the White House.
Siegel explained that the “massive water explosion” from the Federal Reserve and Congress will continue to provide a huge tailwind for stocks.
But, the immediate future, he warned, remains uncertain.
“It is difficult for me to see, without a stimulus package and the uncertainty in that election, to have a lot of progress between now and the first week of November,” Siegel said. “I think uncertainty will continue to weigh on the markets.”
As such, it does not weigh on markets on Monday, as did the Dow Jones Industrial Average DJIA,
exceeded more than 400 points. The S&P 500 SPX,
at tech-heavy Nasdaq Composite COMP,
also stable higher.
Watch Siegel’s interview: