'Stocks have the green light': Guggenheim's Minerd says massive stimulus will support equities at least through the end of the 1st quarter
- Stocks could continue to go higher at least through the end of the first quarter given the massive stimulus out of Washington and the Fed's purchase program, according to Guggenheim's Scott Minerd.
- The chairman of investments and global CIO told CNBC on Thursday "Stocks have a green light...I probably would think that at least through the end of the first quarter it's a pretty safe place to be investing money."
- Federal Reserve Chairman Jerome Powell reiterated Thursday that the central bank is far from tapering its asset purchases or raising interest rates. Meanwhile President-elect Joe Biden laid out plans for a $1.9 trillion stimulus injection on Thursday.
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Guggenheim's Scott Minerd indicated he's bullish on stocks in the near-term during a Thursday CNBC interview.
"I'm a pretty conservative guy but right now given the Fed purchase program, the idea that we're gonna get a lot of stimulus out of Washington. I think stocks have a green light," said the global chief investment officer.
Federal Reserve Chairman Jerome Powell reiterated Thursday that the central bank is far from tapering its asset purchases or raising interest rates, a signal Minerd said will be good for stocks.
On the fiscal aid front, President-elect Joe Biden laid out plans for a $1.9 trillion stimulus injection on Thursday. That number equates to around 9% of US GDP.
While Minerd acknowledged there are always risks in investing, he said putting money into equities right now is likely a safe bet for investors.
"I probably would think that at least through the end of the first quarter it's a pretty safe place to be investing money, I mean on a relative basis," he said.
Minerd also said that the Federal Reserve will face a hard time tapering its asset purchases, and if its not seeing inflation pressures, the Fed will likely let unemployment go down to 3% before it starts to think about tapering.
That could take "years," Minerd added.