Longtime Bull Jeremy Siegel Predicts a Milestone

In a recent CNBC interview, Wharton finance professor Jeremy Siegel–who predicted the Dow’s rise to 24,000—said he thinks the index will hit 25,000 adding that the milestone will be spurred by tax reform. [Note: the DJIA closed yesterday at 24,504.] “The corporate tax cut is particularly what I think the market wants,” Siegel said, adding, “That could boost earnings by 8 percent or so, and that’s a positive for stocks.” That said, he argued that… Read More

Jeremy Siegel is Bullish on Stocks

Wharton finance professor Jeremy Siegel remains bullish notwithstanding others’ concerns regarding “the market’s potential reliance on Trump’s tax- and regulation-cutting agenda,” according to a recent CNBC interview. “What has driven the market further up has been the great earnings season that we had in the first quarter,” says Siegel, adding, “It was the best guidance, forward guidance, that I had heard in many, many years.” This, along with global growth, greater stability in China, a… Read More

Siegel Says Stay in Stocks

As the Dow continues to climb amidst conjecture by some around a possible market decline, Wharton professor Jeremy Siegel thinks investors shouldn’t avoid buying stocks, according to a CNBC article posted last week. The author of Stocks for the Long Run says that when investors “anticipate a significant drop—say, 20 percent—they typically do not consider the fact that the stock market may in fact rise between current levels and a large decline.” Even if they… Read More

Siegel Still Believes in Stocks for the Long Run

Twenty-two years ago, Wharton professor Jeremy Siegel asserted in his book Stocks for the Long Run that equities were the best long-term investment and that buying and holding through volatility is the best approach for investors. This according to an article in last week’s Wall Street Journal. Siegel’s research, which covered more than two centuries, showed that stocks generated 6.7% in annual returns (inflation-adjusted) compared to 3.6% for U.S. government bonds. He expects the post-election… Read More

Siegel Says Rally Has Legs

The stock market boost fueled by the Trump victory will probably continue through December, says Wharton professor Jeremy Siegel in a recent interview with CNBC. “When you have all the small stocks, large stocks, even tech stocks—which we know have some challenges—joining with it, I don’t think this is something that ends tomorrow.” At the time of the interview, Siegel predicted that the Dow could reach 20,000 (it now stands at 19,300). Siegel says that… Read More

Is Shiller’s CAPE as Scary as it Seems?

In the 1990’s, economists Robert Shiller and John Campbell created a valuation metric called the “cyclically adjusted price-earnings” ratio, or CAPE. A Wall Street Journal article from earlier this month examines whether this metric might be sending a false signal that the market is overheated. The CAPE ratio values shares based on 10 years rather than one year of earnings which, the article explains, “smooths out periods like just prior to the housing bust, when… Read More

The “Wizard of Wharton” Looks Ahead

In a recent interview with ThinkAdvisor, finance professor (and senior investment strategy advisor to Wisdom Tree Investments)  Jeremy Siegel shares his view on a host of issues affecting current market conditions: Presidential election: The stock market would be “a little more comfortable with a Clinton victory, but they don’t love her at all.” With regard to a Trump win, “In the short run, there would be some negatives. But in the long run, I don’t… Read More

Siegel Says Stocks Will Higher

“If we get a good second half of the year earnings-wise, then I think the market could be up 10 to 15 percent” predicts well-known Wharton finance professor Jeremy Siegel in a recent interview on CNBC’s “Trading Nation.” According to CNBC’s account of the interview, Siegel says investor perceptions that the market is over-valued is based on weak earnings due in part to lower oil prices. However, he contends that earnings may be primed to… Read More

Are Stocks Cheap or Expensive?

Yale’s Robert Shiller and Penn finance professor Jeremy Siegel have long dueled over whether stocks are cheap or expensive, and Daniel Fisher, of Forbes, reviews the arguments in his recent post. Shiller devised CAPE by measuring the inflation-adjusted earnings per share for the S&P over the trailing 10 years, instead of just the most recent quarter or year, and compared that number to long-run averages since 1871. The results showed a strong tendency for CAPE… Read More

High Dividend Stocks Are Looking Good says Siegel

As interest rates stay low, the appeal of high-dividend stocks has been on the rise and will probably only increase (as investors anticipate a dip in what is now an overvalued market). In a recent interview on CNBC’s “Trading Nation”, Jeremy Siegel (finance professor at the University of Pennsylvania’s Wharton School) asserted that low rates have shown investors that they can’t rely on CD’s, bank accounts or bonds as reliable sources of income. Dividend paying… Read More