Monday, July 26

Santa may have come early, but theres still room for the stock market to rally this year, economist says – MarketWatch

Netflix/Courtesy Everett Collection / Everett Collection

Yardeni Research’s Ed Yardeni, who has been pushing the bullish narrative on this market for a while now, has a message for investors who may be feeling a bit queasy about recent record highs.

‘The market already had its Santa Claus rally. But it just keeps going up anyways, and no matter how much you try to look at it fundamentally, I think the fact is there is so much liquidity with interest rates so low driving the market higher.’

In other words, there’s more to come, according to Yardeni.

He explained to CNBC in an interview on Friday that he believes the stock market will push higher as investors look to diversify away from some of the highest flyers.

“November was one of the best months ever for the market,” Yardeni said. “It broadened quite dramatically, the small-cap and mid-cap stocks. It was just a great, great month for the market.”

The Dow Jones Industrial Average
S&P 500

and Nasdaq Composite

all closed last week in record territory.

Yardeni also told CNBC that the latest jobs numbers suggest the first quarter will avoid the dreaded double-dip recession and that the economy will boom come springtime as the COVID-19 vaccine helps release pent-up demand.

Until that time comes, however, the country has some work to do, with Yardeni acknowledging many Americans are in dire need of another round of aid.

“There are a lot of people who have been left behind. Either they lost their jobs and now are being threatened with possibly losing their unemployment insurance,” he said. “And then, of course, there are a lot of businesses who barely survived the first and second waves of this pandemic.”

Watch the full interview:

At last check, futures on the Dow

and Nasdaq

were pointing to flat starts to the week, with no big moves in either direction Sunday night.

Leave a Reply

Your email address will not be published. Required fields are marked *