Legendary trader and chairman of WisdomTree Investments Michael Steinhardt is generally bullish on the US stockmarket. It "is certainly not cheap", but the fact that it keeps rising in the face of negative sentiment "leads me to believe that the markets are OK" and that "it will continue to go up until interest rates are raised meaningfully". That might take a while, says Steinhardt, who believes rate rises in the near future will be limited to "another quarter of a point or something like that".
In the longer term, "the American economy will continue to grow but not very quickly". While many people on Wall Street are worried about the presidential election, Steinhardttakes a more relaxed perspective.
In his view, Democratic candidate Hillary Clinton "is fairly predictable" and it is "not unreasonable" to think that "her policies will be a continuation of what we've seen". Indeed, Steinhardt thinks that she could generate "excitement" if she wins "and declares that she is investing in infrastructure". This is because "there has been so little infrastructure spending for a long time in the US".
Subscribe to MoneyWeek
Subscribe to MoneyWeek today and get your first six magazine issues absolutely FREE
Meanwhile, although the Republican candidate Donald Trump has "no background and no experience", his plan for cutting personal and corporate taxes is likely to be backed by the Republican-controlled Congress and could end up boosting stocks greatly.
The only downside is that his plans to tear up trade agreements and impose tariffs on Chinese goods could hit global growth. However, China, he says, is currently managing its problems well, "starting to put a lid on the outflows" and stabilising its foreign-currency reserves.
Halifax: House prices rise for the second consecutive month
UK house prices rose again in November, suggesting a resilient property market amid economic turmoil in the past year- are we heading for a crash?
By Vaishali Varu Published
10 vinyl records worth up to £10,000 - is one in your collection?
News Vinyl is experiencing a resurgence and collectors will pay up to £10,000 for some albums - is it time to dust off your old records?
By Marc Shoffman Published