The Tell: Stocks could rally 20% after this bruising rout, says Guggenheim’s Minerd — after that, watch out

Scott Minerd of Guggenheim Partners has some good news — and some bad news — for stock-market investors.

First, the good news: If investors are smarting from a bludgeoning that has racked up withering weekly losses for the Dow Jones Industrial Average DJIA, -1.19% , the S&P 500 SPX, -1.73% and the Nasdaq Composite Index COMP, -2.06% , they can look forward to rosier days ahead.

Minerd, chief investment officer for Guggenheim and one of the world’s preeminent bond-fund managers, on Friday said that the recent rout has left the market relatively cheap, compared with its previous lofty levels, and that has created potential for stocks to surge higher in the next few weeks and months: “Stocks are cheap based on forward multiples and should rally by 15%-20% from here unless policy uncertainty around China and tariffs remains in place,” Minerd tweeted.

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