‘We are the most bullish in the market we are in almost a year.’
He is explaining to Meghan Shu, head of investment strategy at Willington Trust, to CNBC why he is optimistic that the stock market is upside down over the next nine to 12 months.
He said the combination of further support from the vaccine, fiscal stimulus and the Federal Reserve led Wilmington to $ 124 billion in assets abroad in its overweight position in equities – particularly emerging markets and small-cap stocks In.
“US large-cap stocks, technology stocks, have very aggressive growth targets in value at this point,” Shu said. “We see the emerging market equations and America’s small cap as having an additional upside, where there are not a lot of … early economic cycle gains.”
Of course, there is the ability to go all this sideways.
“It’s a challenging period right now as it relates to the virus,” Shu continued. “One of the main risks is that it lasts longer than many people do, well into the first quarter, where we have businesses that stay closed for a long time.”
In addition, a diversion into Senate runoff can be problematic for stocks.
“If we had Democrats, we would have been upset and won both seats [in Georgia]I think you have to reduce the risk of higher taxes in the future and make a more comprehensive policy change that relates to regulation, energy or health care, ”she said.
Then there is the issue of two multiple investors sharing the same viewpoint.
He said, “We all show the same kind on the boat, hoping that similar things will come out, therefore, there is a possibility of upset.” “But we would encourage our clients to see through any short-term volatility as that is a normal part of investing at the end of the day.”
Watch the interview:
The week begins with an upward movement, with futures on the Dow Jones Industrial Average YM00,
Nasdaq Composite NQ00,
And the S&P 500 ES00,
All in green late Sunday night.