According to Jeremy Siegel, a professor of finance at Wharton School, the recent technological rebound on the Nasdaq could be short-lived, CNBC reported Tuesday.
What happened: Siegel was less positive than the technology index, which rose by almost 3.7% on Tuesday as the best day since November.
According to CNBC, Siegel has associated higher interest rates and optimism regarding reopening, which is still getting in the way of growth stocks.
“I do not think they are going to do badly. “We are not going to have an accident at all like we had 20 years ago,” the professor said.
“But I think the better performers in the next six to twelve months will be basically non-tech.”
Technical stocks traded higher on Tuesday with Tesla Ing (NASDAQ: TSLA) rose nearly 19.6% at $ 673.58 and up 2.32% in the after-hours session.
On Tuesday, so-called FAANG shares consisting of Facebook Inc. (NASDAQ: FB), Apple Inc. (NASDAQ: AAPL), Amazon.com, Inc. (NASDAQ: AMZN), Netflix Ing (NASDAQ: NFLX), and Google, a subsidiary of Alphabet Inc. (NASDAQ: GOOGL) (NASDAQ: GOOG) was all in the green.
Facebook shares rose nearly 4.1% to $ 265.74, Apple shares rose 4.06% to $ 121.08, and Amazon shares rose 3.76% to $ 3,062.85.
Netflix shares closed 2.66% higher at $ 506.44. Alphabet Class A and Class C shares rose 1.64% and 1.41%, respectively, to $ 2,040.36 and $ 2,052.70, respectively.
Most of these stocks were muted in the after-hours session.
Why it matters: The Nasdaq fell into the correction area this week, with the Nasdaq 100 falling 11% from a record a month earlier.
Siegel noted that the upward rise in long-term interest rates, according to CNBC, has not yet risen.
“The so-called value stocks are going to be sought for their returns because I think the interest rates are still going to be much higher on the long term effect here,” the analyst said.
He predicted that the Dow would reach 35,000 in 2021, which is a level of almost 10% above Tuesday’s close.
Siegel remains bullish, except on tech stocks, saying the “stock market still has a way to go”, according to CNBC.
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