‘I’m a monetary theorist. This is what I teach and study. This is unprecedented in 75 years, since World War II. I think there’s a lot of repressed liquidity in the market that once the vaccine and the pandemic fears fade in 2021, we’re going to see a big boost in activity.’
That’s Jeremy Siegel, the Wharton professor credited for calling Dow 20,000 in 2015, explaining to CNBC in an interview on Monday why he believes that the stock market “is looking forward to a really good” run next year, regardless of who takes the White House.
Siegel explained that the “tremendous burst of liquidity” 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 that election uncertainty, for there to be a lot of progress between now and the first week of November,” Siegel said. “I think that uncertainty is going to continue to weigh onto the markets.”
Well, it wasn’t weighing on the markets on Monday, as the Dow Jones Industrial Average DJIA, +1.50% surged more than 400 points. The S&P 500 SPX, +1.61% and tech-heavy Nasdaq Composite COMP, +1.86% were also firmly higher.
Watch Siegel’s interview:
This article was originally published on MarketWatch