The Nasdaq rebound may last shorter than a New York minute.
Wharton School finance professor Jeremy Siegel sees near-term trouble, saying the backdrop dramatically supports the reopening trade over Big Tech and growth plays.
“I’ve been extremely bullish here for nine months,” he told CNBC’s “Trading Nation” on Tuesday. “This stock market still has a way to go up.”
But his forecast excludes the tech-heavy Nasdaq, which just returned to positive territory for the year. The index surged 3.6% on Tuesday. Last week, it was in correction territory.
Siegel warns challenges associated with higher interest rates and optimism surrounding economic reopenings will continue to weigh on growth trades.
“I don’t think they’re going to do badly. We’re not going to have a crash like we had 20 years ago at all,” he said. “But I think the outperformers are going to be basically non-tech over the next six to 12 months.”