The market bottom is in, and 2021 could be a boom year for stocks, Wharton Professor Jeremy Siegel says
The stock market bottom is in, and 2021 could be a boom year for stocks.
That’s according to Wharton professor Jeremy Siegel, who made those comments and more in a Friday morning interview on CNBC.
While many investors are questioning why the market has rallied 30% from its lows amid a soaring unemployment rate and weekly jobless claims, Siegel isn’t as surprised.
Siegel emphasized that the reason the stock market has held up so well during the coronavirus pandemic is that “more than 90% of the value of stocks is from earnings more than 12 months in the future.”
From there, it depends on the successful development of therapeutics or vaccines to treat the virus, which is why any news on that front is much more important to the market right now than any backward looking economic data that tells us what we already know.
Reported by Business Insider