Tags: byron wien | recession | economy | rates | rally | market | midterms

Byron Wien: Stocks to Rally After Midterms, Next Recession 2021

(Valiantsin Korznikau/Dreamstime)

Thursday, 11 October 2018 03:15 PM

Investment guru Byron Wien predicts that the stock market will rally right after the midterm elections and that the next recession won't hit until 2021 or later.

Wien told CNBC that there won’t be another recession until at least 2021.

The two-day stock plunge is a buying opportunity for savvy investors, Wien says.

“I think we had to knock some of the complacency out of the market. God knows we’re doing that right now,” he says.

“I think we had to knock some of the complacency out of the market. God knows we’re doing that right now,” Wien, a vice chairman at Blackstone, said in a “Squawk Alley ” interview. “I think this is a correction in an ongoing bull market.”

However, for investors, the road to get past the midterms may be filled with nail-biting days of sudden volatility.

For example, U.S. stocks sank to the lowest levels of the day late Thursday afternoon and headed for a sixth consecutive decline, extending the longest losing streak of Donald Trump’s presidency as insurers and energy companies tanked and an earlier rally in tech stalled, Bloomberg reported.

Treasuries surged, the dollar fell with oil, and gold, that traditional safe haven, posted its biggest gain in more than two years.

All major equity benchmarks were down more than 1 percent. The S&P 500 Index was down 2 percent on the day and nearly 6.5 percent in the past six sessions. The tech-heavy Nasdaq 100 Index surrendered an earlier rally and added to its 4.4 percent decline on Wednesday. Trading was heavy with volume surging roughly 55 percent above average for this time over the past 30 days.

“This is just a normal run-of-the-mill correction that happens to be concentrated in some of the more expensive and most notable names in technology,” said Jamie Cox, managing partner at Harris Financial Group. But I think it’s been precipitated by the uncertainty about global growth and whether or not Fed policy is going too far too fast.

© 2018 Thomson/Reuters. All rights reserved.

   
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Investment guru Byron Wien predicts that the stock market will rally right after the midterm elections and that the next recession won't hit until 2021 or later.
byron wien, recession, economy, rates, rally, market, midterms
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2018-15-11
Thursday, 11 October 2018 03:15 PM
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