Stocks are cheap and should rally 15% to 20%: Guggenheim 

The stock market hasn’t peaked yet, Guggenheim’s head of investing told CNBC on Friday.

MINERD TWEET

U.S. equities have been hit recently as fears of increasing inflation and rising interest rates trim corporate profit expectations.

On Friday, stocks fell once again. The Dow Jones Industrial Average closed 298 points lower after dropping more than 500 points at its lows of the day. The Nasdaq Composite closed down 2.1 percent and the S&P 500 fell 1.7 percent and briefly entered correction territory.

However, Minerd believes the seasonals are now starting to turn positive.

“History shows us that when we have these fall corrections, the market bottoms 50 percent of the time in October,” he noted. “If it doesn’t bottom in October, about 30 percent of the time in November.”

As for trade war fears weighing on stocks, Minerd said the Trump administration is “deeply concerned” about the behavior of the market.

“It’s probably going to soften their position and make them more willing to try to cut a deal with China,” he said.

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