By Dima Kulakov

Renowned Wharton Business School professor, Jeremy Siegel, shared his thoughts on the market’s future.

On Tuesday, Dec 1, the Dow Jones topped 30,000 points, and Siegel thinks the upwards trend will continue. He cited a number of prospective causes for stocks to continue to climb, such as the transition to Joe Biden, as president, Janet Yellen assuming control of the Treasury Department, etc.

Siegel stated that “these are the best things investors can hope for.” “Most importantly, that stimulus that was put in — and maybe another stimulus — has provided liquidity to the market that we have not seen for 75 years to burst on the scene next year as the vaccine becomes effective”.

Due to developments in the COVID vaccine, investors have begun investing in areas of the market corresponding to reopening, at the cost of tech companies. However, Siegel “doesn’t see a coming sell-off in the technology sector.”

“I think the rotation is going to continue next year, but I think the whole market will go up. So I think this is not just a rotation — I think this is a positive market trend,” Siegel said.

Being a bull, he believes that rising inflation and a strong economy will also push rates higher. However, they will not keep up with corporate profits, meaning equities “will present the most attractive bet for investors.”

“Bonds are just not the place to be, cash is going to be zero … we talk about a ‘TINA’ market — there is no alternative — it’s going to really be that way and that’s going to drive people into stocks in 2021,” he stated.