Professional investor and media analyst Jon Najarian told Newsmax TV that the stock bull market that has been raging since Donald Trump’s election has enough energy to surge as much as 10 percent more despite some looming “bumps” on the road to more record highs.
“The Trump bump can still run,” Najarian told Sunday’s “The Income Generation Show.”
Since Nov. 7, the Dow Jones industrials are up 17%, the S&P 500 is up 14%, and the Nasdaq is up 16%.
“In the short term, there's going to be those bumps that could cause either (Fed Chair Janet) Yellen or the economy to pause and when we hit those, I don't think we see 10 percent corrections. But I do think that we can go up another 7-10 percent this year so again with an eight or nine-month timeframe,” he told host David J. Scranton.
“I'd say more upside than downside,” he predicted.
He also sees the economy gaining some strength amid the regulation rollback and the likelihood that we're going to see taxes decreased as well for individuals and corporates, said Najarian, who with his brother Pete are the co-founders of OptionMonster.com and he's a regular on CNBC's "Fast Money."
“I think those are pretty powerful drivers. And the fact that we've got housing starts highest level since 2007 today, I think that also is a significant increase and optimism for the market,” he said.
However, not everyone is as optimistic.
Yale economist Robert Shiller, who won the Nobel prize for economics in 2014, urges savvy investors to be skeptical of the Trump rally.
As he recently told Bloomberg, the Trump rally reminds him of the dot-com bubble, with investors valuing a fairy tale rather than fundamentals.
“They’re both revolutionary eras,” Shiller said. “This time a ‘Great Leader’ has appeared. The idea is, everything is different.”
He equates it to "herd mentality" investing: Everyone sees everyone else piling in, and the opportunity cost of losing out on further gains seems greater than playing it safe.
“I was tempted to do it, too,” he said. “Trump keeps talking about a new spirit for America and so you could (A) believe that or (B) you could believe that other investors believe that,” he told Bloomberg.
“The market is way over-priced," he says. “It’s not as intellectual as people would think, or as economists would have you believe."
"The Income Generation" airs on Newsmax TV every Sunday at 10 am ET.
(Newsmax wires services contributed to this report).
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