Even another coronavirus spike in the fall won't derail Wall Street's rally, says Jeremy Siegel

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'It's not going to be a serious correction, not anywhere again down near those March lows,' Wharton professor Jeremy Siegel told CNBC on Tuesday.

With the coronavirus demonstrating the importance of technology in the modern world, Siegel said he believes there is room for those stocks towhile other parts of the market that have lagged in the recovery to outperform next year.

"I don't think that that means that tech is going to go down," Siegel said. "The amount of the liquidity that's been added to this economy is there. It's not going to be withdrawn by the Fed because unemployment is going to remain high for a long time. ... So I think there's room really for both groups to go up in 2021, even though we finally might get a turn towards value.", as do interest rates on bank accounts, Siegel said.

"Dividend-paying stocks are still 2%, 3%, 4% and those are mostly value stocks. To the extent people search those, and the extent that the economy finally reopens with therapeutics and vaccines, that does argue for a rotation," said Siegel. But, he reiterated, "[It] does not necessarily mean, though, that the tech stocks have to go down."

 

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It’ll be difficult for stocks if there’s an effective vaccine or the fall wave of covid never manifest

As long as there are no more riots there will be no more riot spikes. Simple.

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