“I am a money theorist. This is what I teach and learn. This is unprecedented for 75 years after World War II. I think there is a lot of depressed liquidity in the market that once the vaccine and the pandemic fears disappear in 2021, we will see a big boost in activity.
This is Jeremy Siegel, a Wharton professor who was recognized 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” term next year, no matter who will take the White House.
Siegel explained that the “huge burst of liquidity” from the Federal Reserve and Congress would continue to provide a huge wind for stocks.
But the immediate future, he warned, remains uncertain.
“It is difficult for me to see, without a stimulus package and with this election uncertainty, that there has been great progress between now and the first week of November,” Siegel said. “I think uncertainty will continue to weigh on the markets.”
Well, that didn’t weigh in on Monday’s markets, as the Dow Jones Industrial Average DJIA,
jump more than 400 points. S&P 500 SPX,
and high-tech Nasdaq Composite COMP,
they were also significantly higher.
Watch the Siegel interview: