Biden’s Pick of US Secretary to Herald Even Higher Stock Markets
Biden’s pick of Janet Yellen as U.S. Treasury Secretary will help see stock markets reach record highs during 2021, predicts the CEO of one of the world’s largest independent financial advisory organizations.
The bold forecast from Nigel Green, founder and CEO of deVere Group, on the day of Joe Biden’s inauguration as the 46th President of the United States, follows Ms Yellen’s testimony in Congress ahead of her expected appointment.
Green observes: “Today’s political pageantry in Washington represents the dawning of an era of renewed certainty, stability and the return to established norms, all of which the markets approve.”
“However, despite the inauguration pomp and ceremony at the Capitol, investors’ focus is now already on Janet Yellen, who will take over from Steve Mnuchin as U.S. Treasury Secretary. In her testimony in Congress on Tuesday, the former Federal Reserve Chair called on lawmakers to ‘act big’ on coronavirus stimulus especially with interest rates being at historic lows,” he adds.
“This will act as a catalyst for stock markets.”
Following her testimony in Congress, the U.S. dollar dipped lower as investors moved away from safe-haven assets, such as the U.S. currency, and more towards stocks, indicating more confidence in the markets.
As the markets experienced their best performance between the election and the inauguration for any president going back at least five decades, the deVere CEO warned investors not to be complacent when confidence grips the markets. “Investors should ride the Biden bounce in the markets – but do so judiciously.”
Green concludes: “Ms Yellen has indicated that she will do whatever is necessary to get the economy going again. We can expect considerable government spending under the Biden administration and ultra-low interest rates to be maintained by the Fed.
“There will be peaks and troughs as always, but with these policies and greater stability in the White House, I believe, we could see markets produce even higher highs in 2021 than in 2020.”