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“We are the most bullish on the market we have been in about a year.”
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This is Meghan Shue, head of investment strategy at Wilmington Trust, explaining to CNBC why she is optimistic that the stock market will grow in the next nine to 12 months.
She said a combination of the vaccine, the fiscal stimulus and additional support from the Federal Reserve has led Wilmington, which operates more than $ 124 billion abroad, to add to its excessive stock position – especially in emerging markets. and small-cap stocks.
“US high-capacity stocks, technology stocks, have a lot of really aggressive growth targets, valued at valuations right now,” Shue said. “We see that emerging market shares and small US capital have an added bonus, if many of these early business cycle benefits are not fully listed.”
Of course, there is the potential for everything to go sideways.
“This is a difficult time right now, in terms of the virus,” Shue continued. “A major risk is that this will persist longer than many people expect, until the first quarter when we have business closed for an extended period of time.”
Also, a twist in the Senate leaks could be problematic for action.
“If we had, the Democrats would upset us and we would win both places [in Georgia]”I think you need to weigh the risk of higher taxes in the future and a more comprehensive policy change that relates to regulation, energy or health care,” she said.
Then comes the issue of two investors who share the same perspective.
“We all seem to be on the same side of the boat, expecting the same things to disappoint, so there’s a potential for upset,” she said. “But we would encourage our clients to look at any short-term volatility, because that is, at the end of the day, a normal part of investing.”
Watch the interview:
The weeks seem to start with an upward move, with the future on the Dow Jones Industrial Average YM00,
Nasdaq Composite NQ00,
and S&P 500 ES00,
all in green late Sunday night.