The recent tech-led rebound on the Nasdaq could be short-lived, according to Jeremy Siegel, a finance professor at the Washington School, CNBC said Tuesday.
what happened: Siegel was less than bullish on the tech-heavy index, which rose nearly 7.7% on Tuesday, the best day since November.
According to CNBC, Siegel is associated with high interest rates and optimism about re-spending.
“I don’t think they will do anything bad. Not going to crash like we did 20 years ago.
“But I think outperformers will basically become nontech in the next six to 12 months.”
Tech stocks rallied on Tuesday Tesla Inc. (Nasdaq: TSLA) rose nearly 19.6% to 5,673.58 and rose 2.32% in the subsequent session.
On Tuesday, so-called FAANG stocks were included Facebook Inc. (Nasdaq: FB), Apple Pal Inc. (Nasdaq: AAPL), Amazon.com, Inc. (Nasdaq: AMZN), Netflix Inc. (Nasdaq: NFLX), and a subsidiary of Google Alphabet Inc. (Nasdaq: Google) (Nasdaq: Google) were all green.
Shares of Facebook jumped nearly 1.1% to 5,265.74, shares of Pal rose 6.06% to 1,121.08d and shares of Amazon rose 76.7676% to $ 3,062.85.
Shares of Netflix rose 2.66% to close at 6,506.44. Alphabet Class A and Class C shares rose 1.64% and 1.41% to 0,040.36 and 0,052.70, respectively.
Most of these stocks were muted in the subsequent session.
Why it’s important: The Nasdaq hit a correction this week and the Nasdaq 100 fell 11% from an all-time high recorded a month ago.
Siegel noted that the march above long-term interest rates has not yet emerged, according to CNBC.
“The so-called value stocks will be sought for their yields, as I think interest rates will be even higher in the long run,” the analyst said.
It forecasts the Dow to drop 35,000 in 2021, a level about 10% from Tuesday’s close.
According to CNBC, Siegel Technology is bullish, with the exception of stocks.
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